Finance

ROI calculator

Measure the return on an investment or project and see how much remains to recover your money or reach a target.

Calculate your return

What do you want to analyze?

$

$

Includes recovered capital and any profit.

Options: target ROI and term
%

Calculates the equivalent annual compound return.

Publicidad

How to interpret ROI

These metrics answer different questions and should be reviewed together.

ROI

Compares profit or loss with the entire investment.

Multiplicador

Shows how much you recovered in total for every dollar invested.

Margin

In business, compare profit with total revenue.

ROI formula

ROI = (amount recovered − total cost) ÷ total cost × 100. If you invested $25,000 and recovered $38,000 in total, you earned $13,000 and your ROI was 52%.

This tool expresses break-even as a monetary amount. To calculate it by units or customers, you also need the price, variable cost, and fixed costs. Use the break-even calculator for that analysis.

Frequently asked questions

What is the ROI formula?

ROI is calculated by subtracting total cost from recovered value, dividing the profit or loss by total cost, and multiplying by 100.

Should I enter total revenue or net profit?

In simple-investment mode, enter the total recovered value including invested capital. In business or project mode, enter total revenue and each cost once.

Are ROI and profit margin the same?

No. ROI compares profit with total cost. Margin compares profit with revenue.

Does a positive ROI mean the investment was good?

Not necessarily. You should also consider time, risk, inflation, taxes and other alternatives.

When should ROI be annualized?

When comparing investments with different terms. The equivalent annual rate assumes an initial investment and final value without intermediate cash flows.

What factors does this calculator exclude?

It does not automatically include inflation, taxes, risk, opportunity cost or intermediate deposits and withdrawals.