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ROI Calculator

Enter the amount gained and the cost of the investment to calculate ROI.

Net return
$2,000.00
ROI
66.7%

How to use this calculator

  1. 1Enter the total amount returned from the investment.
  2. 2Enter what the investment cost you.
  3. 3Read the net return and ROI percentage.

How the ROI Calculator works

Formula
ROI % = (Amount returned − Cost) ÷ Cost × 100

Return on investment measures how much you gained relative to what you spent, as a percentage. Spend $3,000, get back $5,000, and your ROI is 66.7%. It is a simple, universal way to compare very different investments — a marketing campaign, a piece of equipment, or a course.

ROI’s weakness is that it ignores time: a 50% return in one month is far better than the same 50% over five years. Use it to compare options of similar duration, and pair it with a time frame whenever the periods differ.

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Frequently asked questions

How is ROI calculated?

Subtract the cost from the amount returned to get the net gain, divide by the cost, and multiply by 100. A $3,000 spend returning $5,000 is a 66.7% ROI.

What is a good ROI?

It depends on the risk and time frame. Any positive ROI beats a loss, but compare it against alternatives and how long your money was tied up.

Does ROI account for time?

No — plain ROI ignores how long the investment took. Two investments with the same ROI differ a lot if one took a month and the other took five years.