Calculate your return on investment (ROI) percentage for any business spending, marketing campaign, property improvement or financial decision. Enter the investment cost and the total return to see your net profit, ROI and annualised return.
Enter the total amount you invested (including any associated costs), the total return or revenue that investment generated, and the time period in years. The calculator produces net profit, ROI percentage and annualised ROI.
Net Profit = Return − Investment
ROI % = (Net Profit ÷ Investment) × 100
Annualised ROI = ROI % ÷ Years
A positive ROI means the investment generated more than it cost. A negative ROI means it lost money. Comparing ROI across different investments helps prioritise where to spend.
Marketing campaign cost £2,000, revenue generated £8,500 → net profit £6,500 → ROI 325% over one year → annualised ROI 325%.
Return on investment (ROI) is the simplest and most universally applicable measure of whether spending money was worthwhile. It takes the net profit from an activity (return minus cost) and expresses it as a percentage of the original investment. A 200% ROI means you made £2 for every £1 spent. A −50% ROI means you lost half your money.
The power of ROI as a metric is that it is dimensionless — it lets you compare a £500 marketing test with a £50,000 equipment purchase on the same scale. The ROI of both can be compared, even though the absolute amounts are very different. This makes it the go-to metric for any business comparing where to allocate limited resources.
Be careful to include all costs in the investment figure — not just the primary spend. A marketing campaign might cost £2,000 in ad spend plus £800 in design fees plus £200 in software; the true investment is £3,000. Similarly, the return should be the profit generated by the investment, not just gross revenue. If a £3,000 campaign generated £10,000 in revenue but the products sold cost £4,000 to make, the true return is £6,000 and the ROI is 100% — not 233%.
Tracking ROI consistently across all business activities creates a prioritisation framework. Over time, you can see which activities consistently produce strong returns and concentrate resources there, and which are consistently poor performers and should be reduced or eliminated.
ROI calculations alone should not be used as the sole basis for major capital expenditure decisions without also considering cash flow, payback period, and the time value of money. For significant business investments, a discounted cash flow (DCF) analysis or internal rate of return (IRR) calculation provides more rigour. A qualified accountant or financial adviser can help model these for major spending decisions.
Common questions about this calculator and how to use it.