Finance & planning

ROI Calculator

Compare a project’s return with its initial and additional costs.

Free, no sign-upRuns in your browserReviewed October 2026Formula & methodology
US dollars
US dollars
US dollars

Results update as you type. Your numbers stay in this browser.

Return on investmentExample25%
Net profit
$3,000
Total investment
$12,000

Understand the result

What is ROI?

ROI (return on investment) measures how much you gained or lost relative to what you put in. Subtract the total cost from what the investment returned, divide by the total cost and multiply by 100. Spending $12,000 to get back $15,000 is a $3,000 gain and a 25% ROI.

ROI(Return − Total cost) ÷ Total cost × 100
Annualized ROI(1 + ROI)^(1 ÷ Years) − 1
Net profitReturn − Initial investment − Additional costs

Example: new equipment for a print shop

A shop buys a $10,000 printer, spends $2,000 on setup and training, and earns $15,000 from the extra jobs over two years.

  1. Total investment: $10,000 + $2,000 = $12,000
  2. Net profit: $15,000 − $12,000 = $3,000
  3. ROI: $3,000 ÷ $12,000 = 25%
  4. Annualized over two years: 1.25^(1/2) − 1 ≈ 11.8% per year

The annualized figure is what you should compare with a savings rate, a loan rate or a project that pays back in a different number of years.

What to include

  • Costs: the purchase price plus setup, training, fees, maintenance and the time your team spends.
  • Return: the extra revenue or savings the investment produced, not your total revenue. Do not enter net profit as the return, or costs are subtracted twice.

Common mistakes

  • Comparing ROI across different time frames. 25% over two years is not as good as 25% in one year. Annualize first.
  • Leaving out ongoing costs. Subscriptions, maintenance and staff time lower the real return.
  • Counting revenue you would have earned anyway. Only the incremental return belongs in the formula.
Common questions

ROI FAQ

What is a good ROI?

One that beats your alternatives for the same risk and time. Compare the annualized ROI with what the money could earn elsewhere, such as paying down debt or a lower-risk investment.

Can I compare projects with different durations?

Not with simple ROI. Annualize each one, or use net present value when the timing of cash flows matters.

What is the difference between ROI and ROAS?

ROAS divides revenue by ad spend only. ROI divides net profit by every cost of the investment, so it tells you whether the money actually came back with a gain.

Can ROI be negative?

Yes. If the return is smaller than the total cost, the net profit and the ROI are negative, which means you lost part of the investment.

Guides for this calculation

Build context around the numbers with worked examples from our guides.

Compare Campaign Profitability With Consistent Assumptions →ROAS vs. ROI: The Difference Costs Make →