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Business Calculator

ROI Calculator

Calculate your return on investment from the amount invested, additional costs, and total return. See your ROI percentage, net return, return multiple, and break-even return instantly.

Enter your numbers

Calculate your return on investment

Use the total amount invested, any additional costs, and the return generated by the investment.

Formula

ROI = (Net Return ÷ Total Investment Cost) × 100

Total Investment Cost = Initial Investment + Additional Costs

Your results

ROI analysis

Return on Investment

50.00%

Total Investment Cost

$12,000.00

Net Return

$6,000.00

Return Multiple

1.50×

Break-Even Return

$12,000.00

What the result means

Your modeled return is 50.00% above the total investment cost. The investment generates $6,000.00 in net return after the costs entered above.

Next step

Turn a calculation into a decision

Use the result as a starting point, then compare scenarios, save your assumptions, and continue planning.

01

Calculate

Start with a focused business question and get a clear estimate.

02

Compare

Move from one answer to multiple assumptions and scenarios.

03

Plan

Save useful scenarios in your workspace and build on them later.

Open Business Workspace →Save & Continue in Workspace

How to calculate ROI

Return on investment measures the net return generated by an investment relative to the total amount invested. To calculate it, first add the initial investment and any additional costs. Then subtract that total cost from the return generated.

ROI formula

ROI = (Total Return − Total Investment Cost) ÷ Total Investment Cost × 100

What ROI tells you

ROI puts a return into context by comparing it with the resources required to generate it. That makes it useful when evaluating projects, marketing campaigns, equipment purchases, business investments, expansion opportunities, and other decisions where both costs and returns can be estimated.

A positive ROI means the return entered is greater than the total investment cost. A negative ROI means the return is below the total cost entered.

ROI calculator example

Suppose a business invests $10,000 in a project and spends another $2,000 on related costs. If the project generates $18,000 in total return, the total investment cost is $12,000 and the net return is $6,000.

Total cost

$12,000

Net return

$6,000

ROI

50%

Common ROI questions

What is ROI?

ROI, or return on investment, compares the net return from an investment with the total cost required to make that investment.

What is a good ROI?

There is no universal ROI percentage that is appropriate for every decision. The useful comparison depends on the type of investment, time period, risk, opportunity cost, and the alternatives available to the business.

What costs should I include in ROI?

Include the initial investment plus material costs required to generate the return. Depending on the decision, that can include fees, labor, implementation, marketing, maintenance, financing, or other incremental expenses.

What is the difference between ROI and profit?

Profit is an amount of money. ROI expresses the net return relative to the cost of the investment, which makes it easier to compare investments of different sizes.

Go beyond one calculation

Compare the numbers behind a business decision

When a single ROI calculation is not enough, use scenario analysis to compare financing, break-even points, cash flow, and different assumptions.

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This calculator provides a mathematical estimate based on the values you enter. It does not account for taxes, financing structure, inflation, timing of cash flows, risk, or opportunity cost unless those factors are incorporated into your inputs.