ROI Calculator
Work out the return on any investment, from a new product line to a marketing campaign, including annualized ROI.
- Net gain
- $4,500.00
- Annualized ROI
- 20.42%
- Investment multiple
- 1.45×
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How to use the ROI calculator
- Enter the total amount you invested, including all costs.
- Enter the total amount you got back, or the current value of the investment.
- Enter how long the money was invested to compare returns across different time periods.
ROI formulas
Annualized ROI lets you compare a 2-year project with a 6-month one fairly. For periods under a year it shows what the return would be if repeated over a full year.
Example
You invest 10,000 in stock and marketing for a new product line and get 14,500 back over 2 years. Net gain is 4,500, ROI is 45%, the multiple is 1.45×, and annualized ROI is about 20.42% per year.
Why ROI matters for small businesses
ROI helps you compare very different choices, such as buying more stock, hiring, or running a campaign, on the same scale. It shows where each dollar works hardest.
Limits of ROI
ROI ignores risk and timing unless you annualize it, and it depends on counting every cost. Include your time, fees and shipping, or ROI will look better than reality.
Frequently asked questions
How do I calculate ROI?
Subtract the amount invested from the amount returned, divide by the amount invested and multiply by 100.
What is a good ROI?
It depends on risk and time. Compare it with alternatives like other projects or a savings rate.
What is annualized ROI?
The average yearly return, which makes investments of different lengths comparable.
Can ROI be negative?
Yes, when you get back less than you invested.
Is ROI the same as ROAS?
No. ROAS compares revenue with ad spend; ROI compares profit with total investment.
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