ROI (Return on Investment) Calculator
Just enter your investment and profit (or revenue and cost) to instantly get ROI and the return multiple. See the payback of ad spend or inventory at a glance.
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Input
How to enter profit
$
$
Result
ROI (return on investment)
50.0%
Your return is beating the amount you invested.
Profit
$150,000.00
Investment
$100,000.00
Return multiple
1.50x
| ROI ((profit − investment) ÷ investment) | 50.0 % |
| Return rate (profit ÷ investment) | 150.0 % |
| Net profit (profit − investment) | $50,000.00 |
| Return multiple (profit ÷ investment) | 1.50x |
How it works
- ROI is the return-on-investment ratio given by "(profit − investment) ÷ investment × 100". A value of 0% means you exactly recovered your investment, while a positive value means you earned more than you put in.
- If you do not know the profit, choose the "from revenue and cost" mode to derive profit automatically by subtracting cost from revenue. Enter expenses other than the investment itself as the cost.
- The return multiple is "profit ÷ investment", showing how much profit each unit of currency invested produced. It is a handy benchmark when comparing several initiatives.
- Even with a high ROI, a small investment limits the absolute profit. It is best to look at both the ratio (ROI) and the amount (net profit) when judging results.
- Swapping in different numbers for each type of investment, such as advertising, promotion, or inventory, makes it easier to see which initiative is the most efficient.
- The results of this tool are estimates. For real investment decisions, consider taxes, time horizon, risk, and other factors together.
Frequently asked questions
- How is ROI calculated?
- ROI (return on investment) is (profit − investment) ÷ investment × 100. A value of 0% means you exactly recovered your investment; a positive value means you earned more than you put in.
- What is the difference between ROI and ROAS?
- ROI is a ratio against profit, while ROAS is a ratio against revenue. ROI subtracts cost of goods and other expenses, so it reflects your actual bottom line more accurately.
- What does 100% ROI mean?
- It means you made profit equal to your investment, a 2x return multiple. Note that a high ROI on a small investment still limits the absolute profit.
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