What is the ROI Calculator?
The ROI Calculator computes your return on investment percentage, net profit, and an estimated payback period from your investment cost and the revenue or return it generated, with optional annualized ROI if you provide a time period.
How to Use This ROI Calculator
- Enter your total investment cost.
- Enter the revenue or return generated.
- Optionally enter the time period in months.
- Review your ROI percentage, net profit, and payback estimate.
- Copy the report for your records.
When Do You Need an ROI Calculator?
- Evaluating whether a marketing campaign or business initiative paid off.
- Comparing returns across multiple projects or investment options.
- Reporting investment performance with an annualized rate for longer time horizons.
Frequently Asked Questions
ROI vs ROAS vs profit margin?
ROI measures net profit against total investment cost, including all expenses. ROAS measures revenue against ad spend only, ignoring other costs. Profit margin measures profit as a percentage of revenue rather than investment. Each answers a different question.
What is a good ROI?
It depends heavily on the investment type and timeframe. Marketing campaigns often target 200-500% ROI, while long-term investments like real estate might consider 7-10% annualized ROI strong. Compare against alternatives with similar risk.
ROI for marketing campaigns?
For marketing, ROI should account for all campaign costs — ad spend, creative production, and labor — not just media spend. Compare the net profit generated against this fully loaded cost to get an accurate picture.
Annualized vs total ROI?
Total ROI reflects the entire return over the full investment period, regardless of how long it took. Annualized ROI normalizes that return to a yearly rate, making it possible to fairly compare investments with different time horizons.