ROI Calculator

Calculate return on investment: net profit relative to what you spent.

ROI Calculator

Calculate return on investment: net profit relative to what you spent.

Total cost of investment($)

Revenue or value received($)

Enter values above and click Calculate — results will appear here with the formula explained.

ROI = (Gain − Cost) ÷ Cost × 100

How does this work?

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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Disclaimer: Results are estimates for informational purposes only and do not constitute professional financial advice. Consult a qualified professional for decisions.

What is ROI?

Quick Answer

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 =.

What it does: Calculate return on investment: net profit relative to what you spent.
Formula: ROI = (Gain − Cost) ÷ Cost × 100
Inputs: Total cost of investment ($) · Revenue or value received ($)
Example: 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.

Calculator Inputs at a Glance

Field	What to enter
Total cost of investment ($)	e.g. 5000
Revenue or value received ($)	e.g. 7500

All fields use the exact formulas shown below — results include step-by-step breakdowns you can verify by hand.

How to Use This Calculator

1Add up everything the project or asset cost you.
2Enter the revenue generated or the value received.
3Read ROI and absolute net profit — both matter for small budgets.

Formula Used

ROI = (Gain − Cost) ÷ Cost × 100

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Worked Example

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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Frequently Asked Questions

QWhat counts as a good ROI?

It depends on risk, timeframe and alternatives. Many businesses compare candidate projects against each other and against safe alternatives rather than seeking one universal threshold.

QHow is ROI different from profit margin?

ROI relates gain to the money invested; margin relates profit to sales revenue. A low-margin business can still have excellent ROI if it turns capital over quickly.

QShould ROI be annualized?

For comparing investments held for different lengths of time, yes — use CAGR-style annualization to put them on equal footing.

Quick Answer

What it does: Calculate return on investment: net profit relative to what you spent.

Formula: ROI = (Gain − Cost) ÷ Cost × 100

Inputs: Total cost of investment ($) · Revenue or value received ($)

Example: 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.

Field

What to enter

Total cost of investment ($)

e.g. 5000

Revenue or value received ($)

e.g. 7500

Formula Used

ROI = (Gain − Cost) ÷ Cost × 100

Frequently Asked Questions

QWhat counts as a good ROI?

It depends on risk, timeframe and alternatives. Many businesses compare candidate projects against each other and against safe alternatives rather than seeking one universal threshold.

QHow is ROI different from profit margin?

ROI relates gain to the money invested; margin relates profit to sales revenue. A low-margin business can still have excellent ROI if it turns capital over quickly.

QShould ROI be annualized?

For comparing investments held for different lengths of time, yes — use CAGR-style annualization to put them on equal footing.