ROI Calculator: How to Calculate Return on Investment for Marketing, Real Estate, and Business Decisions

Return on Investment, or ROI, is the single most important metric for evaluating whether your money is working hard enough. Whether you are running a Google Ads campaign, buying rental property, upgrading manufacturing equipment, or investing in stocks, ROI tells you in percentage terms how much profit you made relative to what you spent. Use the ROI Calculator at Today Calculator to get instant results for any investment scenario.

The ROI Formula

Component	Formula	Example
ROI (%)	(Net Profit / Cost of Investment) × 100	($500 / $2000) × 100 = 25%
Net Profit	Total Gain − Total Cost	$2,500 earned − $2,000 cost = $500

A 25% ROI means you earned 25 cents for every dollar invested. Anything above 0% is profitable, but most businesses aim for specific targets based on their industry.

Common Business Scenarios Using ROI

• Marketing campaigns — If you spend $5,000 on Facebook ads and generate $15,000 in sales, your ROI is ($15,000 − $5,000) / $5,000 × 100 = 200%
• Real estate — Buy a rental property for $200,000, earn $24,000/year in rent after expenses. Annual ROI: $24,000 / $200,000 × 100 = 12%
• Equipment purchase — A $10,000 machine increases production by $3,000/year. ROI: ($3,000 / $10,000) × 100 = 30% per year
• Stock investment — Buy $1,000 of shares, sell for $1,200 six months later. Simple ROI: ($200 / $1,000) × 100 = 20%

Simple ROI vs. Annualized ROI

Simple ROI does not account for the time the money was invested. A 20% return over 6 months is very different from a 20% return over 5 years. To compare investments with different timeframes, use annualized ROI:

Annualized ROI = (1 + ROI)^(1/n) − 1 where n = number of years

Investment	Simple ROI	Time Period	Annualized ROI
Stock trade	20%	6 months	44%
Real estate	20%	5 years	3.7%

ROI Mistakes to Avoid

• Forgetting hidden costs — Account for transaction fees, taxes, maintenance, and labor. These can turn a positive ROI negative
• Ignoring time value of money — $100 today is worth more than $100 next year. Use annualized ROI or NPV for longer timeframes
• Comparing across different time periods — A 30% ROI over 3 months outperforms a 50% ROI over 3 years
• Confusing revenue with profit — If a campaign generates $10,000 in sales but cost $9,500 to run, the ROI is only 5.2%, not impressive
• Using ROI alone for risky investments — A high ROI often comes with higher risk. Always consider risk-adjusted returns

Benchmark ROI Targets by Industry

Industry	Typical Good ROI	Why
Digital marketing	300–500%+	Low entry cost, high scalability
Real estate	8–15% annual	Stable, leveraged with mortgages
Stock market	7–10% annual	S&P 500 historical average
Small business	15–30% annual	Higher risk, hands-on management

Run the numbers on your next investment with the ROI Calculator at Today Calculator. Enter your cost and gain to see your return percentage instantly, and use the annualized option when comparing investments with different time horizons.