Calculate return on investment: net profit relative to what you spent.
Calculate return on investment: net profit relative to what you spent.
Enter values above and click Calculate — results will appear here with the formula explained.
Return on investment answers a blunt question: for every dollar put in, how many came back? Dividing net profit by total cost expresses the answer as a comparable percentage usable across wildly different projects.
ROI's simplicity is both strength and weakness. It ignores time (a 50% ROI in one month dwarfs 50% over five years) and can miss hidden costs. For multi-year comparisons pair it with annualized figures from the investment return calculator.
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ROI Calculator computes calculate return on investment: net profit relative to what you spent. Formula: ROI = (Gain − Cost) ÷ Cost × 100. Example: Spending $5,000 on equipment that generates $7,500 of new business gives ($7,500 − $5,000) ÷ $5,000 =.
Return on investment answers a blunt question: for every dollar put in, how many came back? Dividing net profit by total cost expresses the answer as a comparable percentage usable across wildly different projects.
ROI's simplicity is both strength and weakness. It ignores time (a 50% ROI in one month dwarfs 50% over five years) and can miss hidden costs. For multi-year comparisons pair it with annualized figures from the investment return calculator.
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Spending $5,000 on equipment that generates $7,500 of new business gives ($7,500 − $5,000) ÷ $5,000 = 50% ROI — a $2,500 net gain.
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