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ROI Calculator

Calculate Return on Investment (ROI) for a campaign or project.

ROI (return on investment) measures profit relative to cost: (revenue - cost) / cost. It answers whether an initiative creates incremental value.

ROI can be compared across projects only when the time window and cost definition are consistent. This calculator also estimates an annualized ROI when you provide a horizon.

Prefer an explanation- Read the guide.
Need definitions- Browse the glossary.
ROI vs ROAS: definitions, formulas, and when to use eachROAS: What it is and how to use itUTM + GA4 attribution: practical tracking for paid ads (without lying to yourself)Incrementality: how to tell if ads are actually driving growth
 
$
Include ad spend, tools, and labor if applicable.
$
Used to compute annualized ROI. Set to 12 if your inputs are annual.
Tip: you can type commas (e.g., 10,000).

Example

Using the default inputs, the result is:
66.7%
Revenue
$5,000
Total cost
$3,000
Horizon (months)
12

How to calculate

  1. Enter revenue attributable to the campaign or project.
  2. Enter total incremental cost (ads, tools, labor, agencies) for the same window.
  3. Optionally enter the horizon in months to compute annualized ROI.
  4. Review ROI, profit, and the return multiple together.

Formula

ROI = (Revenue - Cost) / Cost; Annualized ROI = (1 + ROI)^(12 / months) - 1
  • Revenue and cost are measured over the same time window.
  • Cost includes all incremental costs you attribute to the initiative.

Benchmarks

  • Positive ROI means profit exceeds cost; ROI of 0% means break-even.
  • High ROI on small spend can be less useful than moderate ROI at scalable volume; pair ROI with capacity constraints.
  • For paid ads, compare ROI to ROAS and margin assumptions to avoid misattribution.

FAQ

Is ROI the same as ROAS-
No. ROAS is typically revenue divided by ad spend, while ROI uses profit (revenue minus cost) divided by cost.

Common mistakes

  • Using lifetime revenue for some campaigns but short-window cost for others (time mismatch).
  • Leaving out 'hidden' costs like agency fees or salaries (definition drift).
  • Treating attributed revenue as causal truth when incrementality is unknown.

How to interpret

How to interpret ROI
  • ROI focuses on profit relative to cost; it's stricter than ROAS.
  • Use a consistent cost definition (include tools/labor if you decide to).
  • Compare ROI across initiatives using the same timeframe.
Common pitfalls
  • Leaving out 'hidden' costs like agency fees or salaries.
  • Using lifetime revenue for some campaigns but not others.
  • Comparing ROI with different attribution rules.

Related calculators

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ROAS Calculator
Calculate Return on Ad Spend (ROAS) and estimate contribution profit after ad spend.
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Break-even ROAS Calculator
Estimate the break-even ROAS based on contribution margin assumptions.
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Target ROAS Calculator
Estimate a target ROAS to cover variable costs plus a desired margin buffer.
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Paid Ads Funnel Calculator
Model CPM -> CTR -> CVR to estimate CPC, CPA, ROAS, and profit per 1,000 impressions (with margin and variable costs).
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Incrementality Lift Calculator
Estimate incremental conversions, incremental ROAS, and incremental profit from a holdout test.
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Marginal ROAS Calculator
Estimate diminishing returns and find the profit-maximizing ad spend from a simple response curve.

Quick checks

  • Keep attribution model and window consistent when comparing campaigns.
  • Pair efficiency metrics (ROAS/CPA) with profit assumptions (margin, refunds, fees).
  • Validate tracking after site changes (pixels/events can silently break).