ROI Calculator

Calculate the return on investment for any business decision. Enter your costs and expected returns to see ROI percentage, net profit, and payback period.

$

Total upfront cost of the investment

$

Total value or revenue generated from the investment

How long until you receive the full return

$

Monthly maintenance, subscription, or operating costs

Understanding ROI

ROI (Return on Investment) measures how much profit you make relative to what you invested. An ROI of 50% means you earned $0.50 for every $1 invested.

Payback Period is how long it takes to recover your initial investment. Shorter is generally better—you want your money back as quickly as possible.

Annualized ROI lets you compare investments of different durations. A 50% ROI over 2 years is different from 50% over 6 months.

ROI Benchmarks

Stock market average 7-10% / year
Real estate 8-12% / year
Small business 15-30% / year
Marketing campaigns 5:1 ratio (400%)

💡 Decision Framework

  • ROI > 0%: You're making money
  • ROI > 15%: Beats typical business returns
  • ROI > 100%: You've doubled your money
  • Payback < 12 months: Generally low risk

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