Return on Investment (ROI) Calculator

What is ROI?

ROI stands for Return on Investment. It is a financial metric used to measure the profitability of an investment.

How do I calculate ROI?

The ROI formula is: (Gain from Investment - Cost of Investment) / Cost of Investment. The result is expressed as a percentage.

What is considered a good ROI?

A good ROI varies depending on the industry and the type of investment. Generally, an ROI greater than 10% is considered good, but it's important to consider other factors such as the risk involved and the duration of the investment.

Can ROI be negative?

Yes, ROI can be negative if the cost of the investment is greater than the gain from the investment.

How can I use ROI in my business?

ROI can be used to evaluate the effectiveness of various investments and to make informed decisions on where to allocate resources. It can also be used to justify investments to stakeholders and to monitor the performance of existing investments over time.

Why is ROI important?

ROI is important because it helps businesses understand the profitability of their investments and make informed decisions about where to allocate their resources.

How is ROI different from ROAS?

ROI measures the profit or loss generated from an investment, while ROAS specifically measures the revenue generated from advertising spend.

How can I improve my ROI?

You can improve your ROI by investing in assets or strategies that have a high potential for generating profit and minimizing costs associated with the investment.

What factors affect ROI?

Factors that affect ROI include the initial cost of the investment, the time period over which the investment is made, the expected revenue or profit generated from the investment, and the associated costs and risks.