ROI Calculator
Calculate your return on investment (ROI) for any business investment, marketing campaign, or project. See your percentage return and net profit.
ROI Results
How to Use This Tool
- Enter the amount you invested (capital, marketing spend, project budget, etc.).
- Enter the amount returned or generated from that investment.
- Optionally enter the investment period in months to see an annualized ROI.
- Review the ROI percentage, net profit, and — if a period was entered — the annualized ROI for comparing against other investments.
Formula & How It Works
Net Profit
Net Profit = Amount Returned − Amount InvestedThe raw dollar gain (or loss) from the investment.
ROI
ROI % = (Amount Returned − Amount Invested) ÷ Amount Invested × 100The percentage gain or loss relative to what was originally invested.
Annualized ROI
Annualized ROI % = ((Amount Returned ÷ Amount Invested)^(12 / Months) − 1) × 100Converts the total return into an equivalent yearly rate so investments of different durations can be compared fairly.
Practical Examples & Common Use Cases
Marketing campaign
You invest $10,000 in a marketing campaign and it generates $15,000 in attributable sales over 12 months. Net Profit = $5,000. ROI = ($15,000 − $10,000) ÷ $10,000 × 100 = 50%. Since the period is exactly 12 months, the annualized ROI is also 50%.
Quick equipment upgrade
A $5,000 equipment purchase returns $6,000 in extra output value after just 6 months. ROI = ($6,000 − $5,000) ÷ $5,000 × 100 = 20%. Annualized ROI = ((6000/5000)^(12/6) − 1) × 100 = 44%, showing the return is much stronger once adjusted for the short time frame.
Multi-year business investment
A $50,000 investment returns $75,000 after 24 months. ROI = ($75,000 − $50,000) ÷ $50,000 × 100 = 50%. Annualized ROI = ((75000/50000)^(12/24) − 1) × 100 ≈ 22.5% — lower than the raw 50% since it took two years to achieve.
Frequently Asked Questions
It depends on context. Stock market average is ~10%/year. For business projects, 15-30% annually is typically good. Marketing campaigns often aim for 200-500% ROI.
Annualized ROI converts any return to an equivalent yearly rate, letting you compare investments of different durations fairly.
No, ROI is a pure return metric. A 50% ROI from a risky venture is not the same as 50% from a safe investment. Consider risk-adjusted metrics for a fuller picture.
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