ROI Calculator
Calculate Return on Investment from cost and profit, or cost and revenue
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Return on Investment
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Profit
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Revenue
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Frequently Asked Questions
What does ROI measure?
ROI measures how profitable an investment is compared to its initial cost. It is calculated as Net Profit divided by Cost, expressed as a percentage.
What is considered a “good” ROI?
A good ROI varies widely by industry and risk level. Generally, a higher positive percentage indicates a better-performing investment, but it should always be compared against similar opportunities.
What does a negative ROI mean?
A negative ROI means the investment lost money — the return was lower than the amount originally invested.
How is ROI different from profit margin?
ROI compares profit to the cost of investment, while profit margin compares profit to revenue (sales). They answer different questions about performance.