Calculate return on investment percentage with our free ROI calculator. Learn the ROI formula, see examples, and compare against industry benchmarks.
The ROI (Return on Investment) formula measures profitability as a percentage of the initial investment.
Enter the amount invested and the return gained to calculate your ROI percentage.
Get our free guide with ROI formulas for marketing, real estate, stocks, and business investments.
Return on Investment (ROI) is one of the most important metrics for evaluating the profitability of an investment. The ROI formula is simple: divide the net profit by the cost of investment, then multiply by 100 to get a percentage.
Example 1: Marketing Campaign ROI
Investment: $10,000 | Revenue: $30,000
ROI = (($30,000 - $10,000) / $10,000) × 100% = 200%
Example 2: Stock Investment ROI
Investment: $5,000 | Sale Value: $6,500
ROI = (($6,500 - $5,000) / $5,000) × 100% = 30%
A good ROI depends on the investment type and your goals. For marketing campaigns, a 300-500% ROI is often considered excellent. For stock market investments, the S&P 500 historically returns about 10% annually, so anything above this beats the market average.
How do I calculate ROI percentage?
Use our free ROI calculator above or apply the formula: ROI = ((Return - Investment) / Investment) × 100%. For example, if you invest $1,000 and earn back $1,500, your ROI is 50%.
What is the ROI formula in simple terms?
ROI = (Net Profit / Cost of Investment) × 100%. Net profit is the amount gained minus the amount invested.
How to calculate annualized ROI?
For investments held multiple years, use the annualized ROI formula: Annualized ROI = ((Final Value / Initial Investment)^(1/years) - 1) × 100%. Our calculator above handles this automatically.