ROI Calculator
About ROI Calculator
The ROI calculator compares final value with initial investment and added costs to estimate return on investment.
How to Use
The ROI calculator compares final value with initial investment and added costs to estimate return on investment. Enter the Initial investment, Final value, and Additional costs values and review the Net profit, ROI, and Multiple outputs after you calculate.
- Open the calculator : Use ROI Calculator from the Business category.
- Check the inputs : Review the required values and any optional settings.
- Read the formula : Use the formula and notes below to understand how the result is produced.
Common Questions
What formula does the ROI Calculator use?
ROI = net profit / total cost.
What is considered a good ROI for a business?
While highly subjective and industry-dependent, an annualized ROI of 7% to 10% is generally considered a strong baseline as it mirrors the historical average return of the stock market. For specific marketing or ad campaigns, businesses often target a much higher ratio, such as 5:1 (a 500% ROI).
How do you calculate Return on Investment (ROI)?
To calculate ROI, subtract the initial cost of the investment from the final value of the investment to find the net profit. Then, divide that net profit by the initial cost of the investment and multiply by 100 to express the result as a percentage.
Inputs
- Initial investment
- Final value
- Additional costs
Outputs
- Net profit
- ROI
- Multiple
Formula
ROI = net profit / total cost.