Marketing

ROI Calculator

Calculate simple return on investment from what you put in and what you got back.

Enter the investment cost and the final value to see net return and ROI.

Enter your values

Total amount invested. Must be greater than zero.

$

Total amount returned, not just the gain on top of the investment.

$

Results

ROI

Enter investment cost and final value.

Net return

Final value less investment cost.

Investment cost

The amount invested.

Final value

The amount returned.

Results are estimates based on the values entered and are provided for general planning.

Method

How to calculate ROI

ROI compares what an investment returned with what it cost. Subtract the investment from the final value to get the net return, then express that net return as a percentage of the original investment. The percentage format lets you compare investments of very different sizes.

Formula

Net return = Final value − Investment cost
ROI = Net return ÷ Investment cost × 100

Assumptions

  • Investment cost is greater than zero, because ROI divides by it.
  • Final value is the total amount returned, not the gain on top of the investment.
  • This is simple ROI, not annualized ROI: it does not account for the time the investment was held.
  • Taxes, financing costs, and inflation are excluded unless already reflected in the figures entered.

Net return and ROI are calculated at full precision before display. Currency displays two decimals; ROI displays two decimals.

How to interpret the result

A positive ROI means the final value exceeded the investment. Zero means you recovered exactly what you put in. A negative ROI means the final value was lower than the investment — this is a valid result, not an input error. Because this is simple ROI, a 30% return over one month and a 30% return over three years look identical here.

Positive, zero, and negative ROI

ROI above 0% means the investment returned more than it cost. ROI at exactly 0% means it broke even in nominal terms. ROI below 0% means part of the investment was not recovered.

Breaking even in nominal terms is not the same as breaking even in real terms: money returned later is worth less than money invested earlier, and this simple calculation does not adjust for that.

Limitations of simple ROI

Simple ROI ignores time, risk, and the cost of capital. Two investments with identical ROI can be very different if one returned in six weeks and the other in six years.

It also depends entirely on how completely you define the investment cost. Leaving out staff time, tooling, or ongoing maintenance inflates the result. Use one consistent definition when comparing options.

ROI compared with ROAS

Both measure return, but on different bases and in different units.

MeasureFormulaWhat it shows
ROI(Final value − Investment) ÷ Investment × 100Net gain as a percentage of what was invested.
ROASRevenue from ads ÷ Ad spendRevenue generated per dollar of ad spend, as a multiple.
Break-even pointROI = 0% or ROAS = 1.0xThe same money back, with no gain.

Frequently asked questions

Subtract the investment cost from the final value, divide that net return by the investment cost, and multiply by 100.

Enter the total final value. If a $5,000 investment gave back $6,500 in total, enter $6,500 — not the $1,500 gain — or the ROI will be understated.

No. This is simple ROI. It treats a return earned in one month the same as the same return earned over five years. Annualised ROI is a different calculation.

The final value was less than the investment cost, so the investment lost money under the figures entered. The calculator reports it as a valid negative percentage.

ROAS divides advertising revenue by ad spend and is expressed as a multiple of spend. ROI subtracts the investment first and expresses the net result as a percentage. A ROAS of 1.0x is the same money back — an ROI of 0%.

Keep calculating

Related calculators

For advertising specifically, ROAS measures revenue per dollar of spend, and the profit margin calculator shows how much of that revenue is actually retained.

Explore Marketing Calculators