BizTools

ROI Calculator

Calculate Return on Investment (ROI), net profit and total return in seconds. Perfect for entrepreneurs, investors, freelancers and small business owners.

Investment Information

Enter your investment, return and additional costs.

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Ready to calculate ROI?

Enter your investment and return above to instantly calculate ROI, profit and investment performance.

Understanding ROI

Return on Investment (ROI) measures how much profit an investment generates relative to its total cost. It is widely used to evaluate marketing campaigns, equipment purchases, business projects, and financial investments.

By comparing ROI across different opportunities, businesses can prioritize investments that generate the highest returns.

Example Calculation

Investment
$10,000
Additional Costs
$1,000
Return
$15,000
Net Profit
$4,000
ROI
36.4%
Investment Multiple
1.36×

ROI Formula

ROI = (Net Profit ÷ Total Investment) × 100

Divide your net profit by your total investment and multiply by 100 to calculate ROI.

Why ROI Matters

ROI shows how efficiently your investment generates profit. Comparing ROI across different projects helps you allocate your budget to the opportunities that deliver the greatest return.

Whether you're evaluating marketing campaigns, equipment purchases, or new business projects, ROI provides an objective way to measure investment performance and support smarter business decisions.

Frequently Asked Questions

What is ROI?

ROI (Return on Investment) measures how much profit an investment generates relative to its cost.

How is ROI calculated?

ROI is calculated by dividing net profit by total investment and multiplying by 100.

Is a higher ROI always better?

Generally yes, although investment risk and time horizon should also be considered.

Can ROI be negative?

Yes. If your investment loses money, your ROI will be negative.

Can I use this for marketing campaigns?

Absolutely. It works for advertising, equipment purchases, business projects, and financial investments.

How often should ROI be reviewed?

Review ROI regularly whenever evaluating investments or making budgeting decisions.

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