Return On Investment (ROI) Calculator
An ROI calculator can be used for both business and personal investments, such as if you’re looking to invest in a stock, business or home.
ROI Calculator
What is the benefit of knowing your ROI?
Whether you're doing it for personal or business reasons, knowing the ROI (return-on-investment) of anything such as purchasing a home, business, or a financial investments as examples, knowing the ROI can help you understand if its a good investment decision to make.
What is considered a good and poor ROI?
While the ROI of an investment purely depends on what you consider is good or bad, plus what the industry benchmark is, look online for specific benchmarks depending on the investment you're looking at.
- Real Estate ROI
- Marketing ROI
- Financial Investments ROI
— FAQs —
Questions you may have with regards to understanding ROI
What is the purpose of knowing ROI?
By determining the ROI for a business investment you can evaluate the return on a marketing campaign, business acquisition, equipment or product purchase, renovation, upgrade, etc.
Knowing the ROI for personal purposes you can determine if it makes sense to purchase a home if you're looking to upgrade and flip it for profit, stock portfolio, renovation, school/education, etc.
How to handle negative ROI investments?
The best way to handle negative ROI investments is to determine the reasons for it being negative and comparing it against your original plan.
What is the risk of not knowing your ROI?
By not knowing your ROI you run the risk of losing time, money and resources on something that is yielding poor returns.
Are there different ROI calculators?
There are many different types of ROI calculators out there, however the formula always remains the same.
Return-On-Investment Formula:
ROI = (Investment Cost x Net Profit) × 100
“If you’re looking for accounting advise on your ROI, reach out to us and lets see how we can assist.”
- Danny Khanna, Managing Partner