ROI Calculator
Enter your investment cost and return to calculate your ROI percentage, return multiple, and annualised return. Compare two investments side by side.
Was your investment worth it? Whether you are evaluating a marketing campaign, property purchase, stock investment, or business decision, this calculator gives you a clear ROI figure.
Compare two investments to see which delivers the better return.
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What this calculator does
This calculator computes return on investment as a percentage, return multiple, and annualised ROI. It supports simple ROI (investment vs return), revenue-based ROI, and profit-based ROI. You can also compare two investments side by side.
Who it is for
Business owners evaluating decisions, marketers measuring campaign performance, investors comparing opportunities, and anyone who wants to measure the return on money spent.
How to use it
Select your ROI type, enter your investment cost and the return or profit generated. Optionally add a time period for annualised ROI, or enable comparison mode to evaluate two investments.
How the calculation works
ROI = ((gain − cost) ÷ cost) × 100. Return multiple = total return ÷ cost. Annualised ROI = (ROI ÷ months) × 12. For revenue-based ROI, gain = revenue − cost. For profit-based ROI, gain = profit directly.
Worked example
You invest £5,000 in marketing and generate £7,500 in revenue: Gain = £2,500. ROI = 50%. Return multiple = 1.5x. Over 6 months, annualised ROI = 100%/year.
Assumptions and limitations
- Does not account for the time value of money (use NPV/IRR for that)
- Simple ROI does not consider ongoing costs or cash flow timing
- Annualised ROI assumes consistent returns over the period
- Does not factor in tax on investment returns
- Revenue-based ROI assumes all revenue is attributable to the investment
Frequently asked questions
What is a good ROI?
It depends on the context. Stock market average returns are roughly 7–10% per year. Marketing campaigns often target 200–500% ROI. Property investments might aim for 5–15% annual yield. Any positive ROI means you made money.
What is the difference between ROI and profit margin?
ROI measures the return relative to the investment cost. Profit margin measures profit relative to revenue. ROI tells you how well your money worked; margin tells you how efficiently you generate profit from sales.
How do I calculate ROI on a property?
For rental property: ROI = (annual rental income − annual costs) ÷ total investment × 100. Include mortgage interest, maintenance, insurance, and void periods in your costs. For capital growth, compare purchase price to current value.
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Sources and references
General ROI methodology. No specific regulatory source — ROI is a universal financial metric.
Last updated
Last reviewed: 2025-04-12.