ROI Calculator

Estimate return on investment (ROI) by comparing net profit to the invested amount. Enter campaign cost and return to compute ROI%, net profit, and payback factor.

What is ROI?

Return on Investment (ROI) measures the efficiency of an investment. It compares net profit to the cost required to generate that profit.

How to use this calculator

Input the investment cost and the realized return (revenue or profit). The calculator outputs ROI%, net profit, and the payback factor to assess efficiency.

Why it matters

ROI helps prioritize initiatives by expected efficiency and payback. It is key for budgeting and evaluating campaign performance.

Example

If a campaign costs $10,000 and generates $13,000 of revenue, net profit is $3,000, ROI is 30%, and payback is 1.3×.

Assumptions & limitations

ROI can ignore time value and non‑monetary benefits. Consider risk, attribution accuracy, and long‑term effects.

Formula

ROI = (Return − Cost) ÷ Cost × 100%. Payback factor = Return ÷ Cost. Net profit = Return − Cost.

ROI vs ROMI vs ROAS

ROI measures overall investment efficiency. ROMI focuses on marketing by converting attributed revenue to profit using margin. ROAS (Return on Ad Spend) is revenue ÷ ad spend and ignores margin, so it can mislead if margins are thin.

Payback period

Payback indicates how quickly returns cover costs. A payback > 1.0× means the campaign returned more than it cost; shorter periods reduce capital risk.

Time value (NPV, IRR)

For multi‑period investments, use discounted cash flows. Net Present Value (NPV) and Internal Rate of Return (IRR) incorporate the time value of money and are more robust than simple ROI.

Step‑by‑step example

Cost = $10,000, Return = $13,000 → Net profit = $3,000, ROI = $3,000 ÷ $10,000 × 100% = 30%, Payback = $13,000 ÷ $10,000 = 1.3×.