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Business Profit Suite

Measure your return on investment (ROI).

Calculate Return on Investment (ROI) for any business decision. Enter your investment cost and net return to instantly measure ROI % - free online calculator.

Return on Investment (ROI)

Purpose

Measures the profitability of an investment.

Formula

ROI = (Net Profit ÷ Investment) × 100

Inputs

$
$

What is ROI?

Return on Investment (ROI) is a standard financial metric that measures the profitability of an investment relative to its initial capital cost, expressed as a percentage.

How It Works

1. Input Fields: Initial Investment Cost (₹) and Total Net Return or Profit Generated (₹). 2. Calculation Formula: `ROI (%) = [(Net Return − Investment Cost) / Investment Cost] × 100`. 3. Real Example Output: An ad spend of ₹50,000 generating ₹80,000 net profit yields an ROI of 60%.

Worked Example

You spend ₹50,000 on a targeted Google Ads campaign. The campaign directly converts ₹80,000 in net profit. Net Gain = ₹30,000. ROI = (₹30,000 / ₹50,000) × 100 = 60%.

When to Use This

Calculate ROI before signing major vendor agreements, licensing enterprise software, buying machinery, or executing performance marketing campaigns.

Why Use This Tool?

Eliminates vanity decisions and emotional investments. Measuring exact ROI ensures that every business rupee spent generates returns that safely exceed your company's cost of capital.

Data privacy is guaranteed: all calculations run directly in your browser session and are never stored or shared with external parties.

Frequently Asked Questions

How do you calculate ROI?

ROI = (Net Return / Cost of Investment) × 100. For example, if you invest ₹10,000 and earn ₹12,000, ROI = (2000/10000) × 100 = 20%.

What is a good ROI percentage?

A good ROI depends on the investment type. Stock market average is ~10% annually, real estate ~8-12%. Any ROI above your cost of capital is generally considered good.