BUSINESS FINANCE CHANNEL
ROI Calculator
Calculate net ROI percentages and growth factors for business investments.
Calculator Variables
Calculation Overview
Calculate the total return on investment (ROI) and annualized performance percentage of any capital outlay.
Mathematical Model & Formula
ROI % = ((Amount Returned - Amount Invested) / Amount Invested) * 100
Calculates the percentage return relative to the starting risk capital base.
Variables Defined:
Worked Example Scenario
Scenario: Investing $20,000, returning $32,000.
- Gain = $32,000 - $20,000 = $12,000
- ROI = ($12,000 / $20,000) * 100
Result: 60.00% ROI.
Frequently Asked Questions
What is a good ROI?
For general business marketing investments, a 5:1 ratio (400% ROI) is considered strong.