How project ROI is calculated
This calculator measures one project, campaign, or business outlay against its total cost. It does not convert the result into an annual rate and does not use holding period or compound growth.
Total cost = initial investment + other costs
Net return = return amount − total cost
ROI = net return ÷ total cost × 100%
Return multiple = return amount ÷ total cost
Net return = return amount − total cost
ROI = net return ÷ total cost × 100%
Return multiple = return amount ÷ total cost
Example
An outlay of $10,000 plus $2,000 of other costs is a $12,000 total cost. A $15,000 return produces a $3,000 net return, 25% ROI, and a 1.25× multiple.
ROI is not an annualized return
A 25% result over three months is not the same economic outcome as 25% over five years. Compare periods of different lengths with the annualized return or CAGR calculators. Advertising ROAS divides attributed revenue by ad spend only and cannot replace an ROI that includes other costs.