IncomeWikiBusiness calculator
ROI Calculator
Measure net profit, return on investment, and the revenue multiple.
Your inputs
Result
- Net profit
- $600.00
- ROI
- 60%
- Return multiple
- 1.5x
Results are estimates for planning and educational purposes.
What Does ROI Measure?
Return on investment compares net gain or loss with the initial investment. It makes differently sized projects easier to compare, but does not by itself account for time or risk.
How Do You Calculate ROI?
Subtract the investment and additional costs from revenue, then divide net profit by the initial investment. Keep the same time period and cost scope when comparing alternatives.
Why Is Revenue Not the Same as Return?
Revenue is money generated before costs. A project can generate substantial revenue and still have a weak or negative ROI after its investment and operating costs are included.
Formula
- Net profit = Revenue − Investment − Additional costs
- ROI = Net profit ÷ Investment × 100
- Return multiple = Revenue ÷ (Investment + Additional costs)
Example
A $1,000 investment plus $200 in other costs generating $1,800 produces $600 net profit and 60% ROI on the initial investment.