📈 ROI Calculator
ROI is the one number that lets you compare completely different bets: a course, an ad campaign, a piece of equipment, a stock. It answers 'for every dollar I put in, how many came back?' The trap is ignoring time: 40 percent in one month and 40 percent in three years are not the same deal, so this shows the annualized return too.
How long from spending the money to getting it back. Used for the annualized return.
Return on investment
60%
Net profit
$3,000
Annualized return
60%
You turned $5,000 into $8,000, a 60 percent return ($3,000 profit) over 12 months. Annualized, that is 60 percent a year, so compare it to where else that money could sit: a savings account near 4 to 5 percent, the stock market near 8 to 10 percent. If this clears those, it is earning its keep.
Estimates for planning, not financial advice. Your real numbers will vary; that is exactly why you track them.
Does this resonate?
The best ROI is a business you own
A calculator tells you if a bet paid off. Building something that returns every month, on your terms, is the bigger move. That is what Unleash Your Ideas is for.
Browse ideas with real numbers →Good questions about this math
What counts as a good ROI?
It depends on the risk and the time. A safe, boring benchmark is what your money earns elsewhere: 4 to 5 percent in a high-yield savings account, 8 to 10 percent a year in a broad stock index. A business investment carries more risk, so it should aim higher than those to be worth it. The annualized number is what to compare, not the raw percent.
Why does the annualized return matter more than plain ROI?
Because time is money, literally. Doubling your money in one year is spectacular; doubling it over ten years barely beats the stock market. Plain ROI hides that difference. Annualized return puts every investment on the same yearly footing so a quick flip and a long hold can be compared honestly.
How do I use this for ad spend?
Put your ad cost in as the amount invested and the revenue those ads produced as the amount returned, over the period you measured. An ROI under 0 means the ads lost money; a healthy paid channel usually needs to return well above break-even to cover the product cost behind the sale too.
More calculators
🏦
Tax Set-Aside Calculator for the Self-Employed
How much of every payment to put away for taxes.
📐
Profit Margin Calculator
Gross margin, net margin, and markup, each explained in plain English.
🧮
Payroll Tax Calculator for Small Business Owners
What a salary really costs you after employer taxes and benefits.