ROI Calculator

Welcome to our Simple ROI Calculator. This free tool helps you quickly and accurately measure the profitability of an investment. Understanding your Return on Investment (ROI) is crucial for making smart business decisions, tracking performance, and optimizing your strategies for better results.

Whether you're evaluating a marketing campaign, a new piece of software, or any other business expenditure, our calculator provides the clear, simple percentage you need to understand its value.

How to Use This Calculator

1. Enter Total Investment Cost: This is the total amount of money you spent on the investment. This can include ad spend, software fees, labor costs, and any other expenses directly related to the investment.
2. Enter Total Return (Revenue): This is the total amount of money you gained *from* the investment. For example, the total sales or revenue generated by your marketing campaign.
3. Click "Calculate ROI": The tool will instantly show you your Net Profit and your ROI percentage.

Understanding Your ROI Results

The calculator provides two key numbers:

• Net Profit: This is the simplest measure of profit. It's your Total Return minus your Total Investment Cost. A positive number means you made money, and a negative number means you lost money.
• Return on Investment (ROI %): This is the most important metric. It expresses your net profit as a percentage of your original investment.

The Formula for ROI

Our tool uses the standard formula accepted globally:

ROI = ( (Total Return - Total Investment Cost) / Total Investment Cost ) * 100

What is a "Good" ROI?

A "good" ROI depends heavily on your industry, your risk, and the time frame of the investment. A 10% ROI might be excellent for a low-risk, long-term investment (like stocks), while a short-term marketing campaign might aim for a 500% (5:1) or 1000% (10:1) ROI to be considered highly successful.

The key is to use this metric to compare different investments and find the most profitable areas of your business.

Disclaimer: This calculator is for informational purposes only. For complex financial decisions, please consult with a professional financial advisor.