How this ROI calculator works
This ROI calculator compares the money you put into an investment with the money you get back. It shows your net profit, return on investment percentage, total return, and annualized ROI.
ROI is commonly used for business projects, ad campaigns, rental properties, ecommerce offers, marketing spend, and traditional investments because it helps measure how efficiently money turns into profit.
What does ROI mean?
- ROI: Net profit divided by total investment cost
- Net profit: Final value minus total cost basis
- Annualized ROI: ROI adjusted for the length of time invested
- Return multiple: Final value divided by total cost basis
Common uses
- Compare two investment opportunities
- Evaluate ad spend or campaign profitability
- Measure business project performance
- Estimate returns over different time periods