Return on investment (ROI) calculator

ROI stands for return on investment.

ROI compares what an investment brought back with what it cost: (return − cost) ÷ cost × 100. 30% means every £1 spent brought back £1.30.

The formula

ROI = (What it brought back − what it cost) ÷ what it cost × 100

Worked example: 30.0%

The example is a UK software company in one month: £50,000 of revenue excluding VAT, 400 customers and £180,000 in the bank.

  1. (£26,000 − £20,000) ÷ £20,000 × 100 = 30.0%

Work out your ROI

Until you type a figure, the results show an example business. Fill in only what you know: from then on every result uses your figures alone, and nothing you type leaves your browser.

Your business numbers

Start with any one figure. Until you do, the results show the example business, whose figures are the grey hints in each box.

What this calculation uses

On a campaign, a hire or a piece of kit.

Extra gross profit it produced.

Add more of your numbers

Open a group to fill it in. Everything you add shows up in the list below the calculator.

Sales and VAT
My figures cover one

Everything you invoiced in the period.

VAT rate on your sales

Input VAT on your purchases in the period.

Subscriptions and contracts, excluding VAT.

Marketplaces only: what buyers paid in total.

Costs

Costs that grow with each sale: materials, hosting, payment fees.

Salaries, employer National Insurance, pensions, freelancers.

Ads, sales salaries and tools.

Rent, software, insurance, admin.

From your accounts. 0 if you have none.

For the period, if you pay any.

Things that last more than a year.

Customers and orders

Or invoices, for a service business.

Recurring revenue over one month

Extra MRR from existing customers.

Growth

The month, quarter or year before, on the same basis as your turnover.

Cash

In the period, not what you invoiced.

In the period, not counting equipment.

Balance sheet

Cash, equipment, money owed to you.

Loans, bills, tax due.

Team

Everyone added together.

ROI for the example

Example

30.0%

  1. (£26,000 − £20,000) ÷ £20,000 × 100 = 30.0%

Formula: (What it brought back − what it cost) ÷ what it cost × 100.

Gain
+£6,000

Everything your numbers show

For the example business: 29 of 29. Type your own figures to replace them. Select one for its page.

How to read your result

Use the gross profit it produced as the return, not revenue, or a campaign that sells at a loss will look like a success.

Watch out for

Say over what period. A 30% return in one month and over three years are very different results.

Last checked . Estimates only, not financial, tax or legal advice: check your accounts and documents, and take advice before you act. More terms in the startup glossary.

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