Free ROI calculator

Effortlessly calculate your return on investment (ROI) using our free ROI calculator. Simply enter your business details below, and our tool will provide a tailored and accurate ROI estimate.

Accurate, effortless
analytics

With Usermaven, you can make smarter, data-driven decisions that directly enhance your ROI.

For product teams

Truly experience your product through your users’ eyes.

Find out more

For marketers

Explore the hidden stories behind every click and scroll.

Find out more

What is return on investment & how to calculate it

What is ROI?

Return on Investment (ROI) is a financial metric that measures the efficiency or profitability of an investment. In simple terms, it tells you how much return you get for every dollar invested.

ROI formula:

ROI = Net profit
Total investment × 100

In this formula, "Net profit" refers to the income generated from the investment minus the initial investment cost. "Total investment" is the total amount spent or invested in the project or asset.

For example, if you invest $1,000 in a marketing campaign that generates $1,500 in revenue, your ROI would be:

ROI = 1,500 - 1,000
1,000 × 100 = 50%

How to use our free ROI calculator?

Usermaven’s ROI calculator simplifies the process of determining your return on investment. To use our free ROI calculator, follow these steps:

Input your investment

Enter the total amount you’ve spent on a particular project or campaign.

Enter your returns

Include the revenue generated as a result of the investment.

Get your ROI

Our calculator will automatically calculate your ROI based on the provided numbers.

Why is ROI important?

Calculating ROI is crucial for several reasons:

Profitability insight: It gives a clear picture of the success or failure of an investment.
Resource allocation: Helps businesses decide where to allocate budget and resources for maximum profitability.
Performance tracking: ROI measures the performance of different strategies and campaigns over time.
Investment comparison: It allows businesses to compare multiple investment options and choose the most lucrative one.

How to calculate marketing campaign ROI?

Marketing ROI helps businesses evaluate the effectiveness of campaigns and adjust future strategies. To calculate marketing ROI, use the formula:

ROI = Revenue generated - Marketing spend
Marketing spend × 100

For example:
You spend $5,000 on a Facebook ad campaign, generating $8,000 in revenue. Your ROI would be:

ROI = 8,000 - 5,000
5,000 × 100 = 60%

ROI vs. other metrics (ROAS, Profit margin, CAC)

While ROI is a valuable metric, it’s important to understand how it differs from similar metrics:

ROAS (return on ad spend): Focuses on the revenue generated from advertising specifically, rather than overall profitability.

ROAS formula:

ROAS = Revenue from ads
Ad spend × 100
Profit margin: This tells you how much profit you make as a percentage of your total revenue.

Profit margin formula:

Profit margin = Net profit
Revenue × 100

CAC (customer acquisition cost): Measures the cost to acquire a single customer. It is more focused on cost efficiency in customer acquisition than overall profitability.

Factors that influence ROI

Initial investment costs
Operational efficiency
Market conditions
Time frame

Common ROI mistakes to avoid

Ignoring hidden costs
Not setting clear goals
Short-term focus

Why is calculating ROI important for my business?

What is a good ROI for a business?

How can I use Usermaven's free ROI calculator?

What factors influence ROI?

Can ROI be negative?

How do I improve my ROI?

What is a realistic time frame for calculating ROI?

Free ROI calculator

Accurate, effortless
analytics