Finance Tool

ROI Calculator

Return on Investment (ROI) tells you how efficiently money put into a business, campaign or asset turned into profit.

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Result
Enter your numbers and press Calculate to see your result here.

Figures are shown in the currency you select. Currency is a display setting only — no exchange-rate conversion is applied.

ROPA SME Toolkit provides general educational and calculation tools. Results are estimates and should not be considered financial, tax, accounting or legal advice.

What your result means

This tool gives you an instant, accurate ROI calculation so you can make pricing and planning decisions with real numbers instead of guesswork. Adjust any input and recalculate to explore different scenarios before you commit.

Formula

Gain = Return Investment
ROI (%) = (Gain ÷ Investment) × 100

Worked example

A shop owner spends $5,000 on a marketing campaign. Sales attributable to that campaign bring in $6,500 in return.

Gain = $6,500 $5,000 = $1,500
ROI = ($1,500 ÷ $5,000) × 100 = 30%

Common mistakes

  • Comparing ROI across investments with very different time periods without annualising it.
  • Forgetting to net out the original investment from 'return' before calculating gain.
  • Ignoring indirect costs (staff time, ad platform fees) that should be part of the investment.

Frequently asked questions

What's a good ROI?

It depends heavily on the investment type and time horizon. Marketing campaigns often target 200–500% ROI over months, while a long-term asset might target 7–10% annually. Context matters more than the raw number.

Should ROI be annualised?

If you're comparing investments held for different lengths of time, yes — divide the ROI by the number of years (or fraction of a year) held to get a fair comparison.

Is ROI the same as profit margin?

No. Profit margin measures profitability of a sale relative to revenue; ROI measures the return relative to what was invested, and can apply to any kind of investment, not just sales.

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