ROI Calculator: Measure Your Success
Learn how to calculate return on investment for business projects, marketing campaigns, and investment decisions.
Understanding ROI
Return on Investment (ROI) measures the efficiency of an investment:
**Basic ROI Formula**: ROI = (Gain from Investment - Cost of Investment) / Cost of Investment × 100
**Example**: - Investment: $10,000 - Return: $12,000 - ROI = ($12,000 - $10,000) / $10,000 × 100 = 20%
**Key Components**: - Initial investment amount - Final value or return - Time period considered - Additional costs or fees
Types of ROI Calculations
Different ROI applications require specific approaches:
**Marketing ROI**: - Revenue generated from campaign - Total marketing spend - Customer acquisition costs - Lifetime value considerations
**Business Project ROI**: - Project costs and expenses - Revenue or cost savings generated - Implementation timeline - Ongoing operational impacts
**Investment ROI**: - Purchase price and fees - Dividends or interest received - Current market value - Tax implications
Key Takeaways
- ROI measures investment efficiency as a percentage
- Include all costs and returns for accurate calculation
- Different investments require different ROI approaches
- Consider time value of money for long-term investments