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Return on Investment (ROI) Calculator
Updated 4 September 2024
ROI Calculator
Invested amount
You have to invest some money!
$
Returned amount
$
Gain or loss
$
ROI
%
Our ROI calculator evaluates the performance of a business decision by dividing your business spend ('invested amount') by the money generated ('returned amount'). The net gain/loss and percentage is calculated. A positive ROI means the money generated exceeded the investment.
Take some examples:
Take some examples:
- Bob spends $1,000 on a Facebook campaign for his lawn mowing service. He receives $5,000 of new work from the campaign. His ROI is 400%, indicating for every $1 he spends, he makes $4.
- Jane spends $1,000 on a newspaper advert to promote her plant watering business. She receives $500 of new work. Her ROI is -50%, indicating for ever $1 she spends, she makes 50 cents.
Return on investment isn't necessarily the same as 'company profit' or 'return on owner's equity'
- ROI deals with the money you invest and the actual return generated from specific investments.
- Profit instead measures the performance of the business.
- Return on Owner's Equity is different as well, as this looks at the capital invested in the business.
How can I use ROI?
ROI can be used to measure different aspects of a business. For example, marketing campaigns, performance of pricing policies, inventory investment, capital equipment investment, and so forth.