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How to Use Our ROI Calculator

3 min read

How to Use Our ROI Calculator

Return on Investment (ROI) is the universal metric for evaluating whether an investment was worth it. Our ROI Calculator gives you a clear percentage that makes comparing different opportunities straightforward.

Entering Your Numbers

  • Initial Investment -- The total amount you invested or spent upfront.
  • Final Value (or Revenue Generated) -- The total value you received back, including the return of your original investment.

If you prefer, you can enter the net profit directly instead of the final value.

The Formula

ROI = (Final Value - Initial Investment) / Initial Investment x 100

For example, if you invested $10,000 in marketing and generated $35,000 in revenue attributable to that campaign:

ROI = ($35,000 - $10,000) / $10,000 x 100 = 250%

What Makes a Good ROI?

Context matters. A 10% annual ROI on a stock portfolio is excellent. A 10% ROI on a marketing campaign that ran for one week is outstanding. A 10% ROI on a three-year real estate project might be disappointing.

Always consider:

  • Time period -- Annualize returns for fair comparisons
  • Risk -- Higher-risk investments should deliver higher ROI
  • Opportunity cost -- Compare against what you could have earned elsewhere

Common Applications

  • Marketing campaigns -- Which channels deliver the best return?
  • Equipment purchases -- Will this machine pay for itself?
  • Education -- What is the ROI of a degree or certification?
  • Real estate -- Rental property returns versus other investments

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