ROI Calculator
Calculate Return on Investment for projects, marketing campaigns, and business investments. Multiple calculation methods available.
Investment Details
Investment Amount
Total amount invested
Ongoing or follow-up investments
Investment Type
Returns & Revenue
Total value at end of period
Costs & Expenses
Quick Scenarios
ROI Analysis Results
Your ROI analysis is ready
ROI Percentage
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Return on Investment
Net Profit
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Total gain from investment
Payback Period
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Time to recover investment
Annualized ROI
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Yearly return rate
Investment Breakdown
Financial Details
Total Investment
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Total Returns
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Total Costs
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ROI Ratio
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Investment Assessment
Calculate to see investment assessment
Performance Analysis
Enter your investment details above and click "Calculate ROI Analysis" to get detailed performance insights and recommendations.
Industry Benchmark Comparison
| Industry | Average ROI | Good ROI | Your ROI |
|---|---|---|---|
| Calculate ROI to see benchmark comparison | |||
Ready to Analyze Your Investment
Enter your investment details above. Choose from simple ROI, annualized ROI, marketing ROI, or advanced analysis. Get comprehensive insights to make informed investment decisions.
What is Return on Investment (ROI)?
Return on Investment (ROI) is a crucial financial metric used to evaluate the efficiency and profitability of an investment. It measures the amount of return on an investment relative to its cost. ROI is expressed as a percentage and is widely used across various industries to compare the efficiency of different investments.
ROI Formula
ROI = (Net Profit ÷ Cost of Investment) × 100%
Where Net Profit = (Final Value of Investment - Cost of Investment). This simple formula helps investors understand exactly how much profit or loss an investment has generated relative to its cost.
How to Use This ROI Calculator
Select Calculation Method
Choose from Simple ROI, Annualized ROI, Marketing ROI, or Advanced Analysis. Each method provides different insights for specific investment scenarios.
Enter Investment Details
Input your investment amount, returns, costs, and time period. Use quick scenarios for common investment types or load industry-specific presets.
Calculate & Analyze
Get instant ROI percentage, net profit, payback period, and annualized returns. View visual charts and detailed financial breakdowns.
Compare & Decide
Compare your ROI against industry benchmarks. Get personalized recommendations and insights to make informed investment decisions.
ROI Calculation Methods Explained
Simple ROI
ROI = (Net Profit ÷ Investment Cost) × 100
Most basic method suitable for one-time investments with simple returns. Best for short-term projects or single transactions.
Annualized ROI
Annualized ROI = [(1+ROI)^(1/n) - 1] × 100
Adjusts ROI for time period, allowing comparison of investments with different durations. Essential for long-term investments.
Marketing ROI
ROMI = (Marketing Revenue - Marketing Cost) ÷ Marketing Cost
Specialized for marketing campaigns considering customer lifetime value, attribution models, and campaign-specific metrics.
Advanced ROI
Considers NPV, IRR, time value of money
Comprehensive analysis including discounted cash flows, opportunity costs, and risk factors for sophisticated investment decisions.
Industry ROI Benchmarks
| Industry | Average ROI | Good ROI | Time Horizon | Key Factors |
|---|---|---|---|---|
| Technology Startups | 15-25% | 30%+ | 3-5 years | Market growth, IP value, scalability |
| Real Estate | 8-12% | 15%+ | 5-10 years | Location, appreciation, rental income |
| Marketing Campaigns | 5:1 ratio | 10:1+ ratio | 3-12 months | Customer acquisition cost, lifetime value |
| Manufacturing | 10-15% | 20%+ | 2-4 years | Efficiency gains, capacity utilization |
| Stock Market | 7-10% | 12%+ | 5+ years | Market conditions, diversification |
Frequently Asked Questions
What is a good ROI percentage?
A good ROI varies by industry and risk level. Generally, 15-25% is considered good for most business investments. For low-risk investments like real estate, 8-12% is good. For high-risk investments like startups, 30%+ is often targeted. Always compare against industry benchmarks.
What's the difference between ROI and ROIC?
ROI (Return on Investment) measures profitability relative to investment cost. ROIC (Return on Invested Capital) measures how effectively a company uses its capital to generate profits. ROI is broader and can apply to individual projects, while ROIC is a company-wide metric.
How do I calculate marketing ROI?
Marketing ROI = (Revenue attributable to marketing - Marketing costs) ÷ Marketing costs. For accurate calculation, track campaign-specific revenue, consider customer lifetime value, and use proper attribution models. Our marketing ROI calculator includes these advanced features.
Should I use simple or annualized ROI?
Use simple ROI for short-term investments (less than 1 year) or when comparing investments of similar duration. Use annualized ROI for investments lasting multiple years to account for compounding and enable fair comparison across different time periods.
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