ROI Calculator
ROI answers one question. For each dollar I put in, how many came back?
Type your cost and your return and the percent shows up, with the net gain too.
Fees, repairs, subscriptions. They belong in the cost too.
Used for the per year view and the yearly ROI.
A positive ROI means the move paid for it self and then some.
How to use this tool
- 1Return minus cost gives the net gain.
- 2Net gain split by cost times 100 gives ROI.
- 3The per dollar row shows the pay back per unit put in.
The math behind it
ROI = (gain - cost) / cost x 100
Put 2,000 in to a project and it returned 2,600.
The gain is 600 over 2,000, so ROI is 30 percent.
Who this tool is for
I watch which tools folk open most, and this one gets used by the same kinds of people again and again. If any of these sound like you, you are in the right place.
- Small biz owners checking if a spend paid off
- Marketers comparing two campaigns
- Any one weighing a course, tool or gear buy
My first ad campaign cost 500 and brought 560 back. I called it a win at dinner. This tool called it a 12 percent ROI before fees, and a loss after them. The dinner got quieter. The next campaign got planned better. That is what ROI is for, ending debates with your self.
Tips from me
- Count every cost, or the ROI lies. Fees, time and tools all go in the pot.
- Compare ROI over the same time span. Thirty percent in a month beats thirty percent in a year.
- Negative ROI is data, not shame. It tells you where not to put the next dollar.
Mistakes I see with this sum
These are the three slips I made my self or watch folk make most. Skip them and your number will be closer to the truth on the first try.
- 1Counting the return with out the hidden costs. Fees and time belong in the sum.
- 2Forgetting time. 30 percent in one year is a hero. 30 percent in ten is a nap.
- 3Judging one bet. ROI talks over a few tries, not one lucky one.
Two words worth knowing
ROI
Return on investment. Gain as a percent of what you put in.
Payback
How long the money takes to come back to you.
That is the whole page. The tool does the math, and the words above give it a shape. If a number still looks odd, change an input and watch what moves. Playing with the boxes taught me more than any guide did.
Common questions
+What is a good ROI?
It depends on the risk and the time. Many small biz owners hope for 20 percent or more a year. A safe bank sum pays far less.
+Does ROI count time?
Basic ROI does not. A 50 percent gain in one year beats 50 percent over ten years. Keep the time in mind.
+How is ROI different from profit?
Profit is a sum. ROI is a percent of what you put in, so small and big bets can be compared fair.
+Does ROI include time?
Not by itself. Simple ROI is a percent. Add the time span your self, or compare same length bets.
+Can ROI be negative?
Yes. Loss divided by cost gives a negative percent, which is exactly the truth you need.