ROI Calculator

ROI is an essential indicator of the success of a project. Literally translated, return on investment means "return on investment." To find out the ROI, the calculation formula for which will be given below, you need to substitute only two values: the amount of investment in the business and the profit that was obtained as a result. The easiest and fastest way is to use the online roi calculator, which is now in front of you, for calculations. eSputnik provides access to it completely free of charge so that you can carry out financial calculations automatically.

ROI calculator: online calculation in a couple of seconds

If you want to significantly simplify the financial analysis of the project's operational efficiency, then use the online ROI calculator from eSputnik. In just a couple of seconds, he will perform the necessary calculations for you. To do this, enter the size of the invested investment and the amount of profit in the appropriate fields. The finished result is already in front of you.

How to calculate ROI manually

Without using a calculator, the operating efficiency (return on investment) - ROI - is calculated using the formula:

For accuracy of calculations, consider all the costs that you had to incur. Here's how you can calculate the roi (an online example in the niche of selling self-made clothing).

Let's say the company's income from the sale of women's clothing for the month was $ 10,000.

The cost of manufacturing the clothes sold cost another $ 2,000.

Renting a store costs $ 500 a month.

The salaries of the vendors were $ 1,000.

We spent $ 500 on advertising the store and the new collection.

To calculate ROI, you need to know the total cost and, accordingly, business investment:

Costs = 2000 $ + 500 $ + 1000 $ + 500 $ = 4000 $

Now we calculate ROI using the formula:

ROI = (10,000 - 4,000) / 4,000 x 100% = 150%

This means that the investment pays for itself and brings a net profit of 150% of the investment made.

In some cases, to simplify the calculation of the ROI, a balance sheet is used.

What is ROI calculation for?

It is necessary to calculate ROI in order to:

• find out how effective your campaign is;
• determine the break-even point and start working to increase the profitability of the project;
• analyze the effectiveness of various channels and products of the company in order to invest in the future only in profitable areas and ideas;
• close the unprofitable line of business before it leads to significant capital losses.

Where to get data for calculating ROI

You can find all the necessary data to calculate the ROI indicator in Google Analytics and Yandex.Metrica, as well as in the CRM system, if you use it for doing business. To see information on income, set up the corresponding report in the analytics systems.

How to evaluate the ROI result

Evaluate the resulting operating efficiency indicator as follows:

• anything below 0% indicates an operating loss;
• anything above 0% indicates that the investments have paid off and are profitable (the higher the indicator, the higher the operational efficiency of the project);
• a ratio of 0% indicates an operating zero.

ESputnik also has an online ROMI calculator that makes it easy to calculate ROI and ROI. Successful calculations!