Return on Investment Calculator

RETURN ON INVESTMENT FORMULA:

(REVENUE - COST) / COST

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Return on Investment measures the profitability and efficiency of your business and marketing. Try our ROI Calculator:

​HOW DOES THE ROI CALCULATOR WORK?

Total Revenue: 
Insert the gross revenue of your business.

Marketing Cost: 
Insert the total cost of all your marketing and advertising activities: media advertising, design, marketing tools etc.

Business Cost: 
Insert the total cost of all your business operations: Inventory, logistics, human resources, office etc.

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WHY ROI IS IMPORTANT?

WHAT IS A GOOD ROI?

WHY RETURN ON INVESTMENT MATTERS

Return on Investment measures the profitability and efficiency of your business as a whole. A positive ROI indicates a healthy business model.

 

Hint: Do not confuse return on ad spend (ROAS) with return on investment.

 

ROAS measures the return of your advertising budget only, while ROI takes into account advertising, as well as operational costs. Hence ROI is a metric that goes beyond marketing.

 RETURN OF INVESTMENT BENCHMARKS

 

Typically companies are looking for a 10X return for every dollar spent.

 

However, this is not a universal truth.

Every industry has different ROI benchmarks. Even within the same industry profit margins can vastly differ.

Therefore a "good ROI" is one that keeps your business healthy and profitable.

 

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