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Return on Investment Calculator

Enter what an investment cost and what it returned to see the net gain or loss and the ROI percentage. Four modes cover a basic return, a revenue-and-costs project, recurring savings and annualised returns.

Investment details

Calculate ROI from
Include the purchase price, setup, delivery, installation, training and other direct upfront costs.
The total cash, value or benefit directly produced by the investment.
Optional — used to work out the annualised ROI.
Net gain
£5,000.00
ROI
50.00%
Investment cost
£10,000.00
Return multiple
1.50×
Net profit per £1 invested
£0.50

After recovering the investment cost.

Investment cost
£10,000.00
Total return generated
£15,000.00
Net gain
£5,000.00
ROI
50.00%
Return multiple
1.50×
Total return per £1 invested
£1.50
Net profit per £1 invested
£0.50
Investment duration
12 months
Annualised ROI
50.00%

How to use this calculator

  1. Pick your currency at the top of the calculator panel. It sets the formatting only and does not convert the figures.
  2. Under Calculate ROI from, choose the mode that matches what you know — a basic return, revenue and costs, a savings project, or an annualised return.
  3. Enter the investment cost — every direct upfront cost, including purchase, setup, delivery, installation and training.
  4. Fill in the remaining fields for the mode — the return, the revenue and costs, the monthly saving, or the final value and duration.
  5. Read the net gain or loss and the ROI percentage on the right; the summary tab lists every figure used to get there.

The results update as you type. Switching mode keeps your currency and shows a fresh set of example figures for that mode.

How ROI is calculated

Every mode works out a net gain or loss first, then divides it by the investment cost to get the ROI percentage.

Net Gain = Total Return − Investment Cost
ROI % = (Net Gain ÷ Investment Cost) × 100
The core formula, used directly in the basic return mode.

For a revenue-and-costs project, the direct and incremental costs come out first:

Net Gain = Additional Revenue − Direct Costs − Other Incremental Costs − Investment Cost

For a savings project, the recurring net saving is run over the evaluation period:

Net Gain = (Recurring Saving − Ongoing Cost) × Number of Periods − Upfront Investment Cost
Payback Period = Upfront Investment Cost ÷ Net Saving Per Period

For annualised ROI, the total return is converted to an equivalent yearly rate:

Annualised ROI % = ((Final Value ÷ Initial Investment)^(1 ÷ Years) − 1) × 100

Note: ROI is a planning measure, not a guarantee. Include all relevant setup, delivery and ongoing costs for a more realistic result.

What the ROI percentage means

ROI shows profit or loss relative to the original investment. A 50% ROI means a £10,000 investment created a £5,000 net gain after recovering the £10,000 invested. A 0% ROI is break-even — the return exactly equals the cost. A −100% ROI means the entire investment was lost with nothing returned.

The return multiple says the same thing a different way: a 50% ROI is a 1.50× return, meaning every £1 invested brought back £1.50 in total and 50p of that was profit.

ROI does not automatically account for timing, risk, financing costs or all tax effects. Use consistent time periods and include all relevant costs. To compare investments held for different lengths of time, use the annualised ROI mode.

Which mode to use

The four calculation modes and when each one fits
ModeUse it when
Basic returnYou know the full investment cost and the total value or return it generated. Example: A £10,000 machine that produced £15,000 of value.
Revenue and costsA project or campaign generates extra sales that carry their own direct and incremental costs. Example: A £5,000 campaign that brought in £20,000 of revenue with £8,000 of costs to deliver it.
Savings projectAutomation, equipment or a process change that creates a recurring monthly saving. Example: A £12,000 system that saves £1,500 a month against £200 of new monthly cost.
Annualised ROIComparing investments held for different lengths of time on a like-for-like yearly basis. Example: A £10,000 investment worth £15,000 after three years.

Common things to measure with ROI

  • Machinery, equipment, tools and vehicles
  • Marketing campaigns and websites
  • Software, automation and AI tools
  • Staff training and consultancy
  • New products and services
  • Process improvements and cost-saving projects

Important information

Important: this calculator is for general business planning and is not financial advice. It uses the figures you enter and standard ROI arithmetic; it does not model tax, financing costs, risk or the time value of money. For a full revenue-to-net-profit breakdown once overheads and tax are in the picture, see the Profit Margin Calculator, or the Break-Even Point Calculator to find the sales needed to cover costs.

Frequently asked questions

What is return on investment (ROI)?

Return on investment is the profit or loss an investment produced, expressed as a percentage of what it cost. ROI % = (Net gain or loss ÷ Investment cost) × 100. A positive ROI means the investment created more value than it cost; a negative ROI means it has not yet recovered its cost.

How do you calculate ROI?

Subtract the investment cost from the total return to get the net gain or loss, then divide that by the investment cost and multiply by 100. For example, a £10,000 investment that returns £15,000 has a £5,000 net gain, and £5,000 ÷ £10,000 × 100 = 50% ROI.

What is a good ROI for a business project?

It depends on the type of project, the risk and how long the money is tied up. A quick marketing campaign might be expected to return several times its cost, while a long-term equipment purchase could be worthwhile at a much lower annual return. Compare the ROI against what the same money could earn elsewhere, and against the risk of the project.

What is annualised ROI and why does it matter?

Annualised ROI restates a total return as an equivalent yearly rate, so investments held for different periods can be compared fairly. A 50% total return over three years is an annualised ROI of about 14.47% a year. Without annualising, a project that took five years to double your money looks the same as one that did it in one year.

What is the payback period in the savings mode?

The payback period is how long the recurring net saving takes to repay the upfront cost: Upfront cost ÷ Net saving per month. A £12,000 system saving a net £1,300 a month pays back in about 9.23 months. If ongoing costs equal or exceed the saving, there is no payback period and the calculator says so.

What costs should I include in the investment cost?

Include every direct upfront cost needed to put the investment in place: the purchase price, delivery, installation, setup, configuration, training and any consultancy. Leaving costs out inflates the ROI and makes the result less realistic.

Does ROI account for tax, financing costs or inflation?

No. This calculator works out ROI from the cash figures you enter. It does not model tax, interest on borrowing, the time value of money or inflation. Treat the result as a planning measure, and use consistent time periods across the figures you compare.

Does changing the currency convert my figures?

No. The currency selector changes the formatting only — the symbol, the grouping and, for the yen, the decimal places. The amounts you enter and every calculated result stay exactly as they are. There is no exchange rate involved.