Frequently Asked Questions
How do you calculate ROI?
ROI = (Net Return / Cost of Investment) × 100. For example, if you spend $1,000 on marketing and earn $3,000 in revenue, your ROI is 200%.
What is a good ROI for a small business?
A good ROI depends on the type of investment. For marketing, 300-500% is considered strong. For equipment, 15-30% annually is typical. For rental properties, 8-12% is common.
What is payback period?
Payback period is how long it takes to recover your initial investment. If you invest $10,000 and earn $2,500 per month net, your payback period is 4 months.
Is this ROI calculator free?
Yes, completely free. Calculate ROI for any type of business investment with no account needed.
How it works
- Enter your total initial investment cost.
- Enter the total return or revenue you expect to generate.
- Select the time period to see your annualized ROI.
- Use the advanced options if you have ongoing monthly costs or revenue.
Tips for best results
- •Include your time as a cost if you are actively working on the project.
- •A 300% marketing ROI is often the break-even point for many physical products.
- •Pay attention to the annualized ROI to compare this against standard stock market returns.