ROI Calculator: Calculate Your Return on Investment
Calculate your Return on Investment (ROI) instantly. Enter your gain and cost to measure the profitability of your investments.
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What is ROI?
Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment. It tells you how much profit or loss you've made relative to your initial investment.
ROI Formula
ROI = ((Gain - Cost) ÷ Cost) × 100ROI Benchmarks
Acceptable ROI varies by context and risk level:
- Marketing campaigns: 500%+ is good (5:1 return)
- Business investments: 15-25% annually is excellent
- Stock market: 7-10% annual average (S&P 500)
- Real estate: 8-12% annually is considered solid
Frequently Asked Questions
What is a good ROI?
A good ROI depends on the investment type. For marketing, 500%+ is good. For stocks, 10% annually beats the market average.
ROI vs ROAS: What's the difference?
ROAS measures revenue from ads divided by ad spend. ROI measures net profit (revenue minus all costs) divided by total investment.
How do I calculate ROI for marketing?
ROI = ((Revenue - Total Marketing Cost) ÷ Total Marketing Cost) × 100. Include all costs: ads, tools, labor.
What is negative ROI?
Negative ROI means you lost money. If your ROI is -20%, you lost 20% of your investment. Time to reassess the strategy.
Should I factor in time when calculating ROI?
Yes, a 20% ROI over 1 month is much better than 20% over 1 year. Annualize ROI for fair comparison.
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