ROI Calculator – Return on Investment Estimator
The ROI Calculator helps you evaluate the profitability of an investment by calculating your Return on Investment (ROI). It’s useful for business owners, investors, marketers, and real estate professionals to assess whether an investment is worth it.
How to Use the ROI Calculator
Enter the following:
- Investment Cost (the total amount you spent)
- Return or Gain from the investment
The calculator will display:
- Net Profit
- ROI as a percentage (%)
ROI Formula
ROI (%) = [(Gain − Cost) ÷ Cost] × 100
Example
Investment: $5,000
Return: $7,500
→ Net Profit = $7,500 − $5,000 = $2,500
→ ROI = (2500 ÷ 5000) × 100 = 50%
Common Use Cases
- Evaluating business investments
- Analyzing marketing campaign performance
- Real estate property ROI
- Stock market and mutual fund returns
- Startup or product launch evaluation
Why Use an ROI Calculator?
ROI gives a clear percentage of return on any amount invested, helping you make informed decisions. Whether it’s a digital ad spend or buying rental property, this calculator ensures you're not investing blindly.
Frequently Asked Questions (FAQs)
What is a good ROI percentage?
It depends on industry and risk, but generally, 10–20% ROI is considered solid. Higher ROI indicates better investment efficiency.
Can ROI be negative?
Yes. A negative ROI means you lost money on your investment.
What’s the difference between ROI and ROE?
ROI measures return on total investment; ROE (Return on Equity) focuses on shareholder equity returns in a company.
Does ROI consider time?
No, standard ROI doesn't. For time-based efficiency, consider IRR or annualized ROI.
Can I use this for digital ads?
Absolutely. It’s commonly used to assess PPC, SEO, email marketing, and social ad returns.
Related tools: Profit Calculator, Discount Calculator.