How to Calculate ROI
Learn the return on investment formula.
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Quick answer
ROI compares net return to investment cost. It is commonly used to compare business spending, marketing, and asset purchases.
Step-by-step
- Write down the values you already know.
- Use the correct formula and keep the units consistent.
- Calculate the result and check whether it makes practical sense.
Use the calculator
The easiest way to avoid mistakes is to use the related calculator and then review the formula shown on the page.
Common mistakes
- Using the wrong unit or percentage format.
- Rounding too early.
- Forgetting extra costs, waste, taxes, or allowances where they apply.
Related calculators
ROI CalculatorCalculate return on investment percentage.VAT CalculatorCalculate VAT amount, add VAT to a price, or remove VAT from a VAT-inclusive price.Percentage CalculatorCalculate percentages, percentage change, and percentage of a number.Discount CalculatorFind discount amount and final price after a sale discount.