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ROI Calculator

Calculate ROI, net profit, annualized return, marketing ROI, project ROI, payback period, and even compare Option A vs Option B in one place. This calculator is built to feel practical: choose a mode, enter a few values, and get a clean answer with easy-to-understand insights.

Background

ROI stands for return on investment. It helps you compare what you put in versus what you got back. Depending on the situation, that “return” could be investment growth, campaign profit, project value created, or monthly cost savings. In some cases, the smartest move is not just calculating one ROI, but comparing two options side by side.

Enter your numbers

Tip: Choose the mode that best matches your decision: investment growth, campaign performance, projects, cost savings, or comparing two options.

Used in results and summaries.

Controls result rounding.

Basic ROI

Example: invest \$1,000, end with \$1,350.

Annualized ROI

Use this mode when you want a fair year-by-year comparison.

Marketing ROI

Gross profit = revenue × margin.

Project ROI

Net monthly gain = monthly revenue lift − ongoing monthly cost.

Payback / Savings ROI

Net monthly benefit = monthly savings/benefit − ongoing monthly cost.

Compare options

Compare two choices side by side using cost, final value, and time held.

Option A

Option B

Chips prefill and calculate immediately.

Display options

Result

No results yet. Choose a mode, enter values, and click Calculate.

How to use this calculator

  • Choose the mode that matches your case: Basic, Annualized, Marketing, Project, Payback, or Compare.
  • Enter your numbers using the friendly prompts shown for that mode.
  • Click Calculate to see ROI, profit, annualized return, payback time, or side-by-side comparison results.
  • Use Quick picks to try common examples instantly.
  • Use Copy results if you want to save, share, or paste the output into notes, docs, or messages.

How this calculator works

  • Basic ROI: compares net profit to the original investment cost.
  • Annualized ROI: converts a total return into an equivalent yearly return so different holding periods are easier to compare.
  • Marketing ROI: estimates how efficiently campaign spend turned into profit, and can also show ROAS.
  • Project ROI: estimates the return from an upfront investment plus ongoing monthly costs against monthly revenue lift or value created.
  • Payback mode: shows how long monthly savings or benefits take to recover the initial cost.
  • Compare mode: evaluates two options side by side using total ROI, annualized ROI, net profit, and holding period.

Formulas Used

Basic ROI: ROI = (Net Profit / Cost) × 100

Net Profit: Net Profit = Final Value − Cost

Annualized ROI: Annualized ROI = (Final Value / Cost)^(1 / years) − 1

Marketing ROI: ROI = (Gross Profit − Marketing Cost) / Marketing Cost × 100

ROAS: ROAS = Revenue / Ad Spend

Project Net Monthly Gain: Net Monthly Gain = Monthly Revenue Lift − Monthly Cost

Project ROI at Horizon: ROI = ((Net Monthly Gain × Months) − Upfront Cost) / Upfront Cost × 100

Payback Period: Payback = Initial Cost / Monthly Net Benefit

Compare Mode: Compare total ROI and annualized ROI side by side for two options

Example Problem & Step-by-Step Solution

Example 1 — Basic ROI

You invest \$1,000 and end with \$1,350.

  1. Net profit = \$1,350 − \$1,000 = \$350.
  2. ROI = \$350 / \$1,000 × 100 = 35%.
  3. This means you earned \$350 on a \$1,000 investment.

Example 2 — Project ROI

A software project has an upfront cost of \$15,000, ongoing monthly cost of \$500, and creates \$3,200 in value each month. Over 12 months, what is the ROI?

  1. Net monthly gain = \$3,200 − \$500 = \$2,700.
  2. Total net gain over 12 months = \$2,700 × 12 = \$32,400.
  3. Net return after upfront cost = \$32,400 − \$15,000 = \$17,400.
  4. ROI = \$17,400 / \$15,000 × 100 = 116%.

Example 3 — Compare two options

Option A costs \$5,000 and grows to \$6,400 in 12 months. Option B costs \$5,000 and grows to \$7,000 in 18 months.

  1. Option A total ROI = (\$6,400 − \$5,000) / \$5,000 × 100 = 28%.
  2. Option B total ROI = (\$7,000 − \$5,000) / \$5,000 × 100 = 40%.
  3. Then annualize each return to compare them fairly across time.
  4. The stronger choice is the one with the better annualized ROI, not just the bigger total gain.

Frequently Asked Questions

Q: What does ROI mean?

ROI means return on investment. It shows how much profit or value you gained relative to what you spent.

Q: What is a good ROI?

That depends on the situation. In this calculator, the interpretation is descriptive only: negative, break-even, positive, strong, or very strong return.

Q: What is the difference between ROI and ROAS?

ROI focuses on profit relative to cost. ROAS focuses on revenue relative to ad spend.

Q: Why use annualized ROI?

Annualized ROI helps compare returns fairly when investments were held for different lengths of time.

Q: When should I use Project ROI mode?

Use Project ROI mode when you have an upfront investment, an ongoing monthly cost, and a recurring monthly value or revenue lift. It is useful for software, automation, equipment, hiring, and operational improvements.

Q: When should I use Compare mode?

Use Compare mode when you need to choose between two options. It helps you compare total ROI, annualized ROI, net profit, and holding period side by side.

Q: What does payback period mean?

Payback period is the amount of time it takes for your monthly net benefit to recover your original cost.