ROI Calculator: Return on Investment
Measure the profitability of a project, campaign or investment from the gains generated and the costs incurred.
This choice applies to every calculator; amounts are not converted.
Return on investment calculation
Enter the costs incurred and gains generated. ROI is recalculated automatically.
Investment profitability
Advanced options
Annualized ROI
Compound annualization based on the gains-to-cost ratio. It is not ROI ÷ duration.
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How does this tool work?
This ROI calculator measures return on investment from the gains generated and all costs incurred. It shows net gain, total cost and ROI as a percentage, with optional annualization when the duration is known.
Total cost combines the initial investment and additional costs.
Net gain equals gains generated minus total cost.
ROI then compares this net gain with total cost. A separate option estimates a compound annualized return when a duration is provided.
How to use this tool
Enter the initial investment
Enter the amount committed at the start.
Add additional costs
Include expenses directly related to the project.
Enter the gains generated
Enter the total amount recovered or generated.
Analyze ROI
Review net gain, total cost and ROI percentage.
Return on investment formula
ROI compares net gain with the total cost incurred.
Total cost
Total cost = initial investment + additional costs
All costs directly related to the investment should be included.
Net gain
Net gain = gains generated − total cost
A negative net gain represents a loss.
ROI
ROI = (net gain / total cost) × 100
An ROI of 25% means €0.25 of net gain for every €1 of total cost.
Simple ROI does not by itself account for time, risk, intermediate cash flows or the time value of money.
See the detailed explanationHow should ROI be interpreted?
A positive ROI indicates a gain and a negative ROI a loss. The percentage should always be interpreted in context.
- ROI > 0: net gain
- ROI = 0: break-even
- ROI < 0: net loss
Simple or annualized ROI?
Investments with different durations cannot be compared using total ROI alone.
- Simple ROI measures total return
- Annualization introduces duration
Use cases
Business project
Compare expected gains with the expenses actually incurred.
Marketing campaign
Measure the financial return of a campaign from its total cost.
Investment
Quickly assess the overall return of an operation.
Compare two scenarios
Calculate each scenario using the same cost basis to compare their ROI.
Examples
Profitable project
Total cost: €11,000; net gain: €4,000; ROI: about 36.36%.
Input
€10,000 + €1,000 costs · €15,000 gainsLoss-making investment
Net gain: −€1,000; ROI: −20%.
Input
€5,000 costs · €4,000 gainsTips and best practices
- Always compare ROI values calculated with the same definition of costs and gains.
- A high ROI over a long period is not necessarily better than a lower ROI achieved quickly.
- For investments with compounding, the compound interest calculator provides a more appropriate time-based analysis.
Sources and references
Frequently asked questions
What is the ROI formula?
ROI = (net gain / total cost) × 100, where net gain = gains generated − total cost.
What does a 100% ROI mean?
Net gain equals total cost: every euro of cost generated one additional euro of net gain.
Does a negative ROI mean a loss?
Yes. When gains are lower than total cost, both net gain and ROI are negative.
Should all costs be included?
For a meaningful ROI, include costs directly related to the investment and use the same method when comparing scenarios.
Can ROI values over different durations be compared?
Simple ROI does not account for time. Annualization can help, but it relies on assumptions and does not replace a complete cash-flow analysis.
How is annualised ROI calculated?
With a duration entered, annualized ROI is (total proceeds ÷ total cost)^(1 ÷ years) − 1. Proceeds include recovered principal; they are not net profit alone. For €11,000 of costs and €15,000 of proceeds over two years, net profit is €4,000 and the annualized rate is about 16.77%. This approximation does not model the dates of intermediate cash flows.
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