Return on Investment (ROI) measures the profitability of an investment relative to its cost.

How is ROI calculated?

ROI equals net profit divided by the original investment, expressed as a percentage.

What is considered a good ROI?

A good ROI depends on the investment type, risk, and your financial goals.

Can I compare multiple investments?

Yes. ROI makes it easier to compare different investment opportunities.

Does ROI include taxes?

No. Taxes and other external costs are generally not included unless you add them manually.

Can businesses use ROI?

Yes. Businesses commonly evaluate marketing campaigns, equipment purchases, and new projects using ROI.

What are ROI limitations?

ROI does not consider investment risk or the amount of time required to achieve returns.

Is a higher ROI always better?

Generally yes, but investments with higher ROI may also carry greater risk.

Yes. A negative ROI indicates that the investment lost money.

Should ROI be my only investment metric?

No. Consider risk, cash flow, payback period, and long-term objectives alongside ROI.

Business Tool

ROI Calculator

A simple tool for business owners evaluating the success of a marketing campaign or business purchase.

Investment details

Initial investment ($)

Final value ($)

Investment period (years)

Return on Investment

Total ROI

+50.00%

+$5,000

Annualized ROI

14.47%

Initial invested

$10,000

How to use this calculator

1
Enter your initial investment
Input the amount of money or resources you put into the investment.
2
Enter your return amount
Input the total value or profit generated from the investment.
3
Review your ROI percentage
See your return on investment expressed as a percentage.
4
Compare against other options
Adjust the numbers to compare this decision against alternative investments.

Frequently asked questions about ROI Calculator

What is ROI?: Return on Investment (ROI) measures the profitability of an investment relative to its cost.
How is ROI calculated?: ROI equals net profit divided by the original investment, expressed as a percentage.
What is considered a good ROI?: A good ROI depends on the investment type, risk, and your financial goals.
Can I compare multiple investments?: Yes. ROI makes it easier to compare different investment opportunities.
Does ROI include taxes?: No. Taxes and other external costs are generally not included unless you add them manually.
Can businesses use ROI?: Yes. Businesses commonly evaluate marketing campaigns, equipment purchases, and new projects using ROI.
What are ROI limitations?: ROI does not consider investment risk or the amount of time required to achieve returns.
Is a higher ROI always better?: Generally yes, but investments with higher ROI may also carry greater risk.
Can ROI be negative?: Yes. A negative ROI indicates that the investment lost money.
Should ROI be my only investment metric?: No. Consider risk, cash flow, payback period, and long-term objectives alongside ROI.

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Embed this calculator on your site

Copy and paste this code into your website's HTML (WordPress, Webflow, custom HTML, etc.) to display this calculator.

<!-- CalculateAway Widget -->
<div class="calculateaway-embed" data-tool="roi" style="width: 100%; max-width: 800px; margin: 0 auto;"></div>
<script src="https://calculateaway.com/api/widget" async></script>