The method
How it is worked out
- F
- Final value
- I
- Initial investment
Measure return on investment from cost and gain, including percentage and absolute profit or loss. The result updates as you type so you can compare scenarios quickly.
The method
Keep in mind
Use the calculator to compare scenarios rather than as a guaranteed forecast.
Measure the overall return on a project, campaign or investment from its initial cost, final proceeds and holding period. This is useful when comparing a business initiative's profit against the amount committed to it.
Return on investment divides final value minus initial investment by the initial investment; the tool also calculates an annualised rate from the entered holding period. The result depends on including all meaningful costs in the initial figure and all proceeds in the final figure. It does not adjust for risk or account for fees and tax unless you include them.
Use a marketing campaign as an example: enter the full spend and revenue or final value attributable to the campaign, then choose the period. Compare total ROI with yearly ROI. A campaign with impressive revenue is not necessarily profitable if fulfilment costs were left outside the inputs.
Put it to work
Load an example
What moves the result most
Worked out from your figures above. Tap a row to try it.
Who uses it, and when
Marketing teams justifying a campaign, business owners weighing a new machine or software licence, and investors comparing projects that ran for different lengths of time.
Mistakes worth avoiding
Questions
Measure return on investment from cost and gain, including percentage and absolute profit or loss.
Return on investment divides final value minus initial investment by the initial investment; the tool also calculates an annualised rate from the entered holding period. The result depends on including all meaningful costs in the initial figure and all proceeds in the final figure. It does not adjust for risk or account for fees and tax unless you include them.
The core calculation or transformation runs in your browser. Normal website security and analytics may still record page-level events, but the tool does not need to create a public record from your inputs.
Leaving costs out of the investment figure so the return looks better than it was. Comparing total ROI across projects of different lengths instead of annualising. Ignoring the risk taken to earn the return.
No. Use the result as a practical check or planning aid and verify important decisions with the relevant primary source, provider or professional advice.
Executive Insights
Calculator results are estimates based on the figures entered and are not financial, investment, legal or tax advice.