ROI Calculator
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ROI %
0.0%
Net Profit
$0
Annualized ROI %
0.0%
Payback Period
0.0 months
Return on Investment (ROI) measures how much profit an investment generates relative to what it cost to make. Business owners, marketers, and investors use it to compare returns across ad campaigns, equipment purchases, or entire projects, so a decision comes down to one comparable number instead of a gut feeling. It works for almost any kind of spend, not just marketing, which is what makes it one of the most widely used business metrics of all.
Formula
ROI = (Revenue - Total Cost) / Total Cost x 100
Revenue is the total money brought in by the investment, and Total Cost is everything spent to generate it, not just the initial outlay, so remember to include every related expense.
Example
Example: you spend $5,000 on a marketing campaign that generates $15,000 in revenue. Total Cost is $5,000 and Revenue is $15,000, so ROI = (15,000 - 5,000) / 5,000 x 100 = 200%. For every dollar spent, the campaign returned two dollars in profit on top of the original spend.
Industry Benchmark
There is no single good ROI. It is context-dependent and varies by industry, investment type, and how much risk was involved, but a positive ROI above 100% is generally considered strong for most marketing spend. A low-risk investment, such as a savings account, is judged on a completely different scale than a paid ad campaign.
FAQ
What counts as a good ROI?
There is no universal good ROI, since it depends on your industry, margins, and how risky the investment is. As a general rule of thumb, marketing campaigns returning above 100% are considered strong, though the right benchmark for your business depends on your specific cost structure and the risk involved in that spend. Always compare ROI within the same category of investment for a fair read.
How is ROI different from ROAS?
ROI accounts for your total cost, including overhead and expenses beyond ad spend, and expresses the result as a percentage. ROAS only compares revenue to ad spend directly and expresses the result as a multiple, such as 4x. A campaign can look excellent on ROAS while still delivering a weak ROI once your full cost structure, including product and fulfillment costs, is factored in.
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