ROI Calculator
Measure whether an investment paid off: net gain, ROI %, and return multiple.
Calculator
What you spent (ads, tools, contractor, etc.).
Total value returned (revenue, savings, exit proceeds).
Results
ROI
60.00%
Net gain
$3,000.00
Return multiple
1.60x
What this means
Solid ROI on these inputs—assuming the gain is truly caused by this investment and costs are fully counted.
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ROI Summary
ROI = (Return − Cost) ÷ Cost. Use it to compare campaigns, tools, and projects on a common percentage scale.
Explanation
Net gain is return minus investment cost.
ROI expresses that gain as a percent of cost; return multiple is return ÷ cost (e.g. 1.6x).
Business implication: high revenue with negative ROI still destroys value—optimize for profitable growth.
Step-by-step example
Invest $5,000, get back $8,000:
- Gain: $8,000 − $5,000 = $3,000
- ROI: $3,000 ÷ $5,000 = 60%
- Multiple: 1.60x
Formula
Gain = Return − Cost
ROI = Gain ÷ Cost
Multiple = Return ÷ Cost
Helpful tips
- Compare ROI across channels, but normalize for time (a 60% return in a week ≠ 60% in a year).
- Include soft costs (your time) when judging freelancer tool ROI.
FAQ
What is ROI?
Return on investment is net gain divided by cost: (Return − Cost) ÷ Cost. A 60% ROI means you gained $0.60 of net profit per $1 invested.
What should I count as the return amount?
Use the total payoff attributable to the investment—incremental revenue, measured savings, or exit proceeds. Be consistent about time period.
Is ROI the same as ROAS?
No. ROAS (return on ad spend) is revenue ÷ ad spend and ignores that revenue is not all profit. ROI uses net gain over cost.
How accurate is this calculator?
It is exact for the two numbers you enter. Attribution (what the investment truly caused) is the hard part.
Related tools
Key terms
ROI
Definition. Return on investment—gain (or loss) relative to what you put in, usually as a percentage.
In simple terms. ROI helps compare options (ads, tools, courses, equipment) on a common scale. Define the investment and the return window clearly.
ROI = (gain − cost) ÷ cost
Example. Spend $1,000 on a campaign that returns $1,400 attributable profit → 40% ROI.
Common mistake. Claiming ROI without isolating the investment cost or counting revenue that would have happened anyway.
Related calculators. ROI Calculator
Related terms. Profit margin, CAC, LTV
Profit margin
Definition. Profit as a percentage of revenue—how much of each sales dollar remains after the costs you include.
In simple terms. Margin answers “is this business (or period) actually profitable?” Define costs the same way every time so comparisons mean something.
Profit margin = profit ÷ revenue (profit = revenue − costs)
Example. $20,000 profit on $100,000 revenue is a 20% profit margin.
Common mistake. Mixing personal draws, one-off investments, and operating costs without labeling what the margin includes.
Related calculators. Profit Margin Calculator, Gross Margin Calculator
Related terms. Gross margin, Break-even, ROI
CAC
Definition. Customer acquisition cost—what you spend, on average, to win one new customer.
In simple terms. CAC usually includes ads, sales time, tools, and related acquisition spend for a period, divided by new customers won in that period.
CAC = acquisition spend ÷ new customers acquired
Example. $5,000 marketing spend and 25 new customers → $200 CAC.
Common mistake. Excluding sales labor or counting leads instead of paying customers.
Related calculators. CAC Calculator, LTV:CAC Ratio Calculator
Related terms. LTV, LTV:CAC ratio, ROI
Notes & Assumptions
ROI is a universal capital-budgeting and marketing performance ratio. Define cost and return clearly before comparing projects.
Last reviewed: July 2026