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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.

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ROI calculator

Calculate your return on investment using our free ROI calculator.

Invested amount*

The amount you invested

Revenue*

The amount of revenue you generated

Your ROI

Return on investment(%)

Return on investment (total)

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Enter your investment

Start by inputting the total amount you’ve invested into your project or campaign. This is the capital or cost incurred, and you can enter it into the “Invested amount” field.

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Add your revenue

Next, provide the revenue generated from your investment. This represents your earnings or returns. Input this into the “Revenue” field to move forward.

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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:
  1. Input your investment
  2. Enter the total amount you’ve spent on a particular project or campaign.

  3. Enter your returns
  4. Include the revenue generated as a result of the investment.

  5. Get your ROI
  6. 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

  1. Initial investment costs
  2. The larger your investment, the harder it may be to generate high ROI unless you see a proportional increase in returns.
  3. Operational efficiency
  4. Streamlining operations can improve ROI by reducing costs and increasing output without additional investments.
  5. Market conditions
  6. External factors like economic trends and market demand can affect ROI. Investing in high-demand markets generally leads to better ROI.
  7. Time frame
  8. ROI can vary over time. Short-term ROI may be lower as investments are just beginning to pay off, while long-term ROI reflects cumulative growth.

Common ROI mistakes to avoid

  1. Ignoring hidden costs
  2. When calculating ROI, always account for indirect costs like maintenance, training, or downtime. Failing to do so can lead to overestimated returns.
  3. Not setting clear goals
  4. ROI should align with your business goals. For example, a 10% ROI might be considered a success for some projects but a failure for others.
  5. Short-term focus
  6. Avoid calculating ROI based solely on short-term performance. A long-term approach often paints a more accurate picture of the investment’s true value.

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Maximize your return on investment with Usermaven, a powerful analytics platform designed to help you make smarter, data-driven decisions.

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FAQs

Have a question? We've got answers.

Why is calculating ROI important for my business?

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What is a good ROI for a business?

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How can I use Usermaven's free ROI calculator?

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What factors influence ROI?

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Can ROI be negative?

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How do I improve my ROI?

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What is a realistic time frame for calculating ROI?

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