Return on Investment (ROI)

ROI expresses net gain relative to cost. It turns initiatives into comparable percentages so you can rank opportunities.

ROI expresses the return relative to cost as a percentage and evaluates investment efficiency.

Use incremental lift versus a baseline and consistent attribution windows. Pair ROI with quality metrics to avoid optimizing vanity gains.

Return on Investment expresses net gain relative to cost as a percentage. Use incremental lift versus a baseline and consistent attribution windows. ROI helps decide where to allocate budget across campaigns, features, and operations.

Use net gains.

Compute (Gain − Cost) / Cost × 100% using net gains over consistent windows.

$40k gain on $10k cost → 300%.

Provide a gain and cost example and explain incremental vs gross ROI.

Attribution errors, using gross instead of net gains, and ignoring time value can inflate ROI.

ROMI often 100–300% for strong campaigns; varies widely.

ROMI often 100–300% for strong campaigns; context varies widely.

Use incremental lift versus baseline and align windows across channels.

ROI pairs with CPA, CAC, and conversion rate to guide budget allocation.