ROI
Compares profit or loss with the entire investment.
Finance
Measure the return on an investment or project and see how much remains to recover your money or reach a target.
Calculate your return
These metrics answer different questions and should be reviewed together.
Compares profit or loss with the entire investment.
Shows how much you recovered in total for every dollar invested.
In business, compare profit with total revenue.
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.
ROI is calculated by subtracting total cost from recovered value, dividing the profit or loss by total cost, and multiplying by 100.
In simple-investment mode, enter the total recovered value including invested capital. In business or project mode, enter total revenue and each cost once.
No. ROI compares profit with total cost. Margin compares profit with revenue.
Not necessarily. You should also consider time, risk, inflation, taxes and other alternatives.
When comparing investments with different terms. The equivalent annual rate assumes an initial investment and final value without intermediate cash flows.
It does not automatically include inflation, taxes, risk, opportunity cost or intermediate deposits and withdrawals.