ROI Calculator

Work out the classic ROI percentage so you can compare projects on equal footing. Enter what you spent and what you earned or saved, then interpret the resulting percentage against your hurdle rate.

Include purchase price, implementation fees, and any other upfront expenses.
Sum of revenue, cost savings, or resale value realised from the investment.

Numbers provided are for planning purposes. Consult a financial professional before making investment decisions.

Examples

  • Invest $12,500 and receive $16,800 ⇒ ROI = 34.4%
  • Invest $8,000 and receive $6,800 ⇒ ROI = -15.0% (loss)

FAQ

What does the ROI percentage tell me?

It shows the net gain relative to the initial cost. For example, a 25% ROI means you earned 25 cents for every dollar invested after covering costs.

Can ROI be calculated for cost-saving projects?

Yes. Treat the savings as your gain. If a software tool costs $5,000 but saves $7,500 in labour, the ROI is ((7,500 − 5,000) ÷ 5,000) × 100 = 50%.

What if the cost is zero?

ROI is undefined when cost is zero because you cannot divide by zero. Consider using payback period or contribution margin instead.

Additional Information

  • ROI compares net profit (gain − cost) to the original cost, then multiplies by 100 to express it as a percentage.
  • A positive ROI means the initiative returned more than it cost; a negative ROI indicates a loss.
  • ROI does not account for timing. Use discounted metrics such as Net Present Value (NPV) or Internal Rate of Return (IRR) for multi-year projects.
  • Ensure the gain figure includes all benefits (e.g., cost savings, residual value) and the cost figure includes all expenses for a fair comparison.
  • Compare ROI against your organisation's hurdle rate or alternative investment returns to prioritise projects.

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