Business

ROI Calculator

Estimate return on investment from a projected gain and the cost required to generate it.

Last reviewed: April 30, 2026Free toolMethodology

ROI Calculator

Use profit or contribution gain rather than headline revenue when possible.

These fields start with sample inputs. Keep them or replace them, then run the tool to show a fresh result.

Number fields accept plain values and common formatted input such as 250000, 250,000, or 1,234.56.

Result

Calculating the sample result.

Why it matters

ROI is one of the fastest ways to compare campaigns, software purchases, inventory bets, or channel experiments on the same scale.

When to use

  • Comparing acquisition channels or ad campaigns
  • Reviewing software, equipment, or automation payback
  • Prioritizing projects when budget is limited

Inputs & Outputs

Inputs

  • Gain is the total value created by the initiative before subtracting its cost.
  • Cost is the full outlay tied to the investment, including fees, labor, or spend.

Outputs

  • ROI shows the net return relative to the investment cost.
  • Net gain shows the absolute value left after cost is deducted.

ROI formula

Subtract cost from gain to find net gain, then divide net gain by cost. Express the result as a percentage so different investments are comparable.

ROI = ((gain - cost) / cost) x 100

Worked example

1

Ad campaign comparison

A paid campaign generated 18,000 in tracked gross profit from 6,000 in spend.

Inputs

  • Gain: 18,000
  • Cost: 6,000

Steps

  • Net gain = 18,000 - 6,000 = 12,000
  • ROI = 12,000 / 6,000 = 2.0 = 200%

Result

  • The campaign returned 200% ROI and produced 12,000 in net gain.

Edge cases & caveats

  • ROI ignores how long it takes to earn the return.
  • Use net contribution or profit, not revenue alone, when comparing channels.

Frequently Asked Questions

What is a good ROI?

It depends on risk, payback speed, and alternative uses of capital. A lower ROI with faster payback can be more attractive than a higher ROI that takes much longer.

Should ROI use revenue or profit?

Profit is safer. If you use revenue, you can overstate performance because the formula ignores the cost of fulfillment or delivery.

Keep going

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