What is ROI?
ROI (Return on Investment) is an important metric that measures the relationship between investment returns and costs. It is commonly used to evaluate the efficiency of business investments, advertising campaigns, or other financial activities.
How to Use This Calculator?
Simply enter your total investment (such as advertising costs, inventory costs) and total revenue (sales), and the calculator will automatically compute your return on investment percentage.
Calculation Formula
ROI = (Total Revenue - Total Cost) / Total Cost × 100%
Example
If you invest $10,000 in advertising and generate $15,000 in revenue, your ROI = ($15,000 - $10,000) / $10,000 × 100% = 50%, meaning every dollar invested returns $1.50.