What is ROI?
ROI, or return on investment, measures how much you gained or lost on an investment relative to its cost. To find it, divide net profit after all costs by the amount invested, then multiply by 100.
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How to calculate ROI
Divide net profit after all costs by the amount invested, then multiply by 100.
Percentages in this equation use numeric percent values: 40 means 40%.
Why ROI matters
ROI puts different investments on the same scale. You can compare a campaign, a tool, or a new hire by what each returns for what it costs.
A positive ROI means you got back more than you put in. A negative ROI means you lost money.
ROI versus ROAS
ROAS divides revenue by ad spend and ignores other costs. ROI uses profit, so it reflects product costs, fees, and other expenses.
A campaign can have a strong ROAS and a poor ROI if margins are thin.
Getting an honest ROI
Calculate net profit by subtracting all relevant costs from the return, including product costs, media, creative, and tools. Enter that net profit and the amount invested separately: the calculator divides profit by the investment and does not subtract the investment a second time. Keep cost scope consistent, and remember some benefits, like brand awareness, are slower and harder to measure.
Disclaimer
This calculator is for informational purposes only, and we don't guarantee the accuracy of its results. You're responsible for verifying any results before relying on them. See our terms of use.
Common questions
How do you calculate ROI?
Divide net profit by the amount invested, then multiply by 100. For example, a $15,000 return less $10,000 of total costs leaves $5,000 net profit; dividing that by a $10,000 investment gives a 50% ROI.
What is a good ROI?
It depends on your industry, risk, and alternatives. Anything above zero makes money, but compare it with what else you could do with the same budget.
Can ROI be negative?
Yes. Enter a negative net profit for a loss. For example, a $2,000 loss on a $10,000 investment gives a -20% ROI.
What is the difference between ROI and ROAS?
ROAS is revenue divided by ad spend, shown as a multiple like 4x. ROI is net gain divided by cost, shown as a percentage, so it accounts for more of your costs.
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