ROI Calculator | Free Return on Investment Tool
Calculate Return on Investment (ROI) instantly. Use the ROI Calculator to find your ROI percentage and ratio, Gain Calculator to find required revenue, Cost Calculatorto find max investment, or Compare Investments to evaluate options side-by-side.
๐ Want to understand your results?
Read our complete guide to the ROI Calculator โ with real-world examples, expert insights, and pro tips.
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What is ROI and Why It Matters
Return on Investment (ROI) is a financial metric that measures the profitability of an investment relative to its cost. It's one of the most widely used performance measures in business, helping you evaluate whether an investment generated sufficient returns.
ROI is used for everything from marketing campaigns and equipment purchases to stock investments and real estate. A positive ROI means the investment generated profit; a negative ROI means a loss.
The ROI Formula
For example, if you invest $5,000 and earn $10,000: ROI = ($10,000 โ $5,000) รท $5,000 ร 100 = 100%. You doubled your money.
How to Use This Calculator
Enter gain and cost to calculate ROI percentage, ROI ratio, net profit, and see a visual cost vs profit breakdown.
Enter investment cost and target ROI to find the revenue you need to generate.
Enter expected gain and target ROI to find the maximum you can invest.
Compare up to 5 investments side-by-side to find which has the best ROI.
ROI Calculator Pros & Cons
Pros
- โ Instant ROI, gain & cost results
- โ Side-by-side investment comparison
- โ Free forever โ no subscriptions
- โ Works offline after page load
- โ No sign-up or email required
Cons
- โ No Excel/CSV export option
- โ No dedicated mobile app
Frequently Asked Questions
How do I calculate ROI?
ROI is calculated using the formula: ROI = (Gain โ Cost) รท Cost ร 100. For example, if you invest $5,000 and earn $10,000, your ROI is ($10,000 โ $5,000) รท $5,000 ร 100 = 100%. This means you doubled your investment.
What is ROI vs ROAS?
ROI (Return on Investment) measures profitability of any investment, considering all costs. ROAS (Return on Ad Spend) specifically measures advertising efficiency. ROI = (Revenue โ Total Cost) รท Total Cost, while ROAS = Revenue รท Ad Spend. ROI gives the full picture including product costs and overhead.
What is a good ROI?
A good ROI depends on the investment type. For stock market investments, 7-10% annualized is average. For business investments, a 100% ROI (2x return) is often considered strong. Anything above 0% means profit, but the higher the ROI, the better the investment performed relative to its cost.
What is CAGR and how is it different from ROI?
CAGR (Compound Annual Growth Rate) is the annualized rate of return, smoothing out volatility over time. ROI is the total return over the entire period. For example, a 50% ROI over 5 years equals approximately 8.45% CAGR. CAGR is more useful for comparing investments of different time periods.
How do I compare multiple investments?
Use our Compare Investments tool to enter up to 5 investments side-by-side. Enter the gain and cost for each, and we'll sort them by ROI automatically, showing you which investment performed best. The best investment is highlighted with a trophy icon.
Reviewed by Alex Chen, MBA
Digital Marketing StrategistPerformance marketing expert with 8+ years managing multi-million dollar ad budgets.
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