Return on Investment (ROI) Calculator
Calculate the net profit return generated by an investment relative to its total cost.
Calculate Return on Investment (ROI)
Return on Investment (ROI) Formulas & Reverse Equations
Use these standard and algebraic reverse formulas in spreadsheets, agency decks, or media plans:
Solve for ROI
ROI = ((Revenue − Cost) ÷ Cost) × 100Solve for Revenue
Revenue = Cost × (1 + ROI ÷ 100)Solve for Cost
Cost = Revenue ÷ (1 + ROI ÷ 100)Understanding Return on Investment (ROI)
Return on Investment (ROI) measures true profitability by subtracting your total investment cost from the revenue generated before dividing by that cost. Unlike ROAS, which looks at gross revenue per ad dollar, ROI tells executives and finance teams the net percentage gain (or loss) above break-even.
When to Use Return on Investment (ROI)
Use ROI when presenting campaign profitability to finance stakeholders, evaluating full-funnel marketing programs (media + production + agency fees), or comparing capital allocation options.
Industry Benchmarks & Planning Context
An ROI of 0% represents exact break-even (Revenue equals Cost). An ROI of 100% means you doubled your money (net profit equals initial cost).
Frequently Asked Questions About ROI
What is the formula for Return on Investment (ROI)?
Subtract the total cost of the investment from the total revenue generated, divide that net difference by the total cost, and multiply by 100: ROI = ((Revenue − Cost) ÷ Cost) × 100.
Why does $40,000 revenue on $10,000 spend equal 400% ROAS but 300% ROI?
Because ROAS measures gross return ($40,000 ÷ $10,000 = 400%), whereas ROI subtracts the original $10,000 cost first (($40,000 − $10,000) ÷ $10,000 = 300% net profit return).
What does a negative ROI percentage mean?
A negative ROI means total revenue was less than total cost. For example, -25% ROI means the campaign recovered 75% of its cost and lost 25%.