ROI Calculator
Return on investment for a project or campaign as a percentage, with an annualised rate and the return needed for a target.
Your investment
Filled in with example values. Replace them with your own.
Optional
Turns the ROI into a yearly (annualised) rate, so projects of different lengths can be compared.
Shows the amount you would need back to reach it.
Currency symbol
Results update as you type.
Result
ROI: +35% (+$3,500.00 on $10,000.00)
Return on investment
+35%
- Net gainReturned − cost
- +$3,500.00
- Return multipleReturned ÷ cost
- 1.35×
Put in and got back
How it’s calculated
Net return
$13,500.00 − $10,000.00 = +$3,500.00
ROI
+$3,500.00 ÷ $10,000.00 × 100 = +35%
How the ROI calculator works
Enter the total cost of an investment and the amount it returned. The calculator shows the net gain or loss, the return on investment as a percentage and how much came back for each unit put in. Add the time it took to get a yearly rate, or a target ROI to see how much you would need back to reach it.
The formula
ROI = (Amount returned − Cost) ÷ Cost × 100
Annualised ROI = (Returned ÷ Cost)^(12 ÷ Months) − 1
Needed for a target = Cost × (1 + Target ROI ÷ 100)
Worked example
A business spends 10,000 on new equipment, which brings in 13,500 over 18 months:
- Net gain: 13,500 − 10,000 = 3,500
- ROI: 3,500 ÷ 10,000 × 100 = 35%
- Annualised: 1.35^(12 ÷ 18) − 1 = 22.15% a year
- For a 50% ROI it would need 10,000 × 1.5 = 15,000 back, so 1,500 more
Assumptions and limitations
- Money amounts are rounded half up to the cent.
- The annualised rate assumes the return built up steadily, with compounding, over the period.
- The calculator does not account for when during the period money went in or came back, or for inflation and tax.
Frequently asked questions
What should I include in the cost?
Everything the project or campaign needed: money spent, equipment, fees, and staff time if you want a full picture. Leaving costs out makes the ROI look better than it is.
What is the amount returned?
Everything that came back because of the investment: extra revenue, savings, or the value of what you now own. For a marketing campaign it is usually the revenue it brought in; to see profit instead of revenue, use the gross profit from those sales.
Why add a time period?
A 35% return over one year is better than 35% over three years. The annualised ROI turns any period into a yearly rate, using compound growth, so investments of different lengths can be compared fairly.
How is this different from the Investment Return Calculator?
They use the same idea. This one is built for business decisions: a campaign, a new machine or a project. The Investment Return Calculator is set up for holdings such as shares or property, with income received along the way.
What is a good ROI?
It depends on the risk, the time involved and what else you could do with the money. Compare it with your other options rather than with a general benchmark.