Business & SaaS
ROI Calculator
Calculate return on investment as a percentage gain or loss.
ROI is the universal language of business decision-making. It answers: "For every dollar we spent, how many dollars did we get back?" Use it to compare marketing campaigns, capital purchases, and business investments.
ROI
50.0%
- profit
- $5000
- annual R O I
- 50.0% annualized
- payback Period
- 8.0 months
Formula and method
ROI = (Return - Cost) / Cost × 100
Simple ROI calculation. Annualized ROI divides by duration and multiplies by 12 for a monthly perspective. For comparing investments of different durations, use annualized ROI.
Worked examples
Digital advertising campaign
- Total Return ($):
- 18000
- Total Investment Cost ($):
- 5000
- Investment Duration (Months):
- 3
ROI: 260.0%
Equipment purchase
- Total Return ($):
- 85000
- Total Investment Cost ($):
- 60000
- Investment Duration (Months):
- 24
ROI: 41.7%
Assumptions and limits
- Linear returns over the period
- Simple return calculation, not IRR
This tool provides an educational estimate. Rules, rates and personal circumstances can change the answer. Review the assumptions before relying on a result. Report a correction.
Common mistakes to avoid
- Using gross revenue as "gain" instead of net revenue after variable costs.
- Not accounting for the time value of money in long-term investments — use IRR for multi-year projects.
- Comparing unadjusted ROI across different time horizons — always annualize for fair comparison.
Frequently asked questions
What is the difference between ROI and IRR?
ROI is simple and single-period. IRR (Internal Rate of Return) accounts for the timing of cash flows and the time value of money. For projects with multiple cash flows over time, IRR is more accurate.
Is a 200% ROI realistic?
Highly context-dependent. For a small marketing campaign, 200% in 3 months is achievable. For a capital investment, 200% over a year would be exceptional. Context and annualization are essential for interpretation.
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