Simple ROI Calculator

Simple Return On Investment Calculator (ROI)

(a) What is this? This calculator provides a broad indication on the Return On Investment an investment might generate.

(b) What does this tell me? This calculator is used to help determine whether an investment is worth doing or not. It indicates the percentage return an investment will generate.

(c) Why should I use it? To get an indication as to whether an investment is worth considering or not. Compare investment opportunities and determine whether one is better than another.

(d) Caution: This calculator assumes you know both the gains (profit) and the investments (costs) of any particular investment or action. In a complex business setting, it is not always easy to match specific returns (like increased profit) with the specific costs (such as marketing costs) and this makes ROI less trustworthy as a guide for decision making. Simple ROI also becomes less trustworthy as a metric when cost figures include allocated or indirect costs which are probably not caused directly by the action or the investment. Use this calculator as a guide only. You use this calculator at your own risk.