ROI calculator (return on investment)
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How to use this calculator?
1. Enter the amount invested (ad budget, purchase, project)
2. Choose whether you know the amount returned or the net profit
3. Add the duration in years to get the annualized ROI (optional)
4. Read the ROI, net profit and multiple, then share the calculation if needed
Quick answer
How do you calculate ROI?
ROI = (return − investment) ÷ investment × 100. Example: you invest €1,000 and get €1,500 back: (1,500 − 1,000) ÷ 1,000 × 100 = 50% ROI. If it took 3 years, the annualized ROI is 1.5^(1/3) − 1 ≈ 14.47% a year.
| Invested → returned | ROI | Multiple |
|---|---|---|
| €1,000 → €800 | −20% | ×0.8 |
| €1,000 → €1,500 | 50% | ×1.5 |
| €1,000 → €2,000 | 100% | ×2 |
| €2,000 → €5,000 | 150% | ×2.5 |
About the ROI Calculator
What is it?
The ROI (return on investment) calculator measures what an investment brings back compared with what it cost. It gives the ROI as a percentage, the net profit, the investment multiple and, if you enter a duration, the annualized ROI.
Why use it?
ROI lets you compare very different actions with one figure: an ad campaign, a new tool, a training course or an investment. In marketing, it is the simplest way to decide where to put money next.
How does it work?
ROI = (amount returned − amount invested) ÷ amount invested × 100. Multiple = amount returned ÷ amount invested. Annualized ROI = (amount returned ÷ amount invested)^(1 ÷ years) − 1: the average yearly return that would give the same result with compounding.
Usage tips
- In marketing, count the gross profit generated, not revenue, or the ROI will be overstated
- Example: €2,000 of ads generating €5,000 of profit gives a 150% ROI
- An ROI of 100% means you doubled your money
- To compare investments of different lengths, look at the annualized ROI
- To measure revenue per euro of advertising, use ROAS instead
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