(Revenue − Cost) / Cost × 100%Find the difference between revenue and cost, then compare it with cost.
Calculator
ROI Calculator
ROI
ROI calculator
Calculator
Enter your investment values
Provide the revenue and cost values used to calculate your ROI.
Revenue from the same investment and time period being evaluated.
The total cost included in your investment definition.
Both values must use the same currency. Currency changes formatting only.
Revenue − Cost/Cost=ROI
Your ROI result
Enter your values
Enter revenue and cost to calculate return on investment.
ROI compares the revenue and cost values you enter. Its meaning depends on whether the chosen cost definition includes the costs relevant to your decision.
Methodology details
- Formula version
- ROI_FORMULA_V1
- Calculation method
- (Revenue − Cost) / Cost
- Data handling
- Entered values stay local
- Interpretation
- No universal threshold
The metric
What ROI tells you.
Return on investment measures the difference between revenue and cost relative to the cost you include in the calculation. It is expressed here as a percentage and as a decimal.
An ROI of 50% means the entered revenue exceeded the entered cost by one half of that cost. The result depends on the scope of both values, not on a universal threshold.
Calculation method
How to calculate ROI.
Use revenue and cost from the same investment, period, scope, and currency.
Decimal ROI = (Revenue − Cost) / CostThe decimal form is the percentage result divided by 100.
Worked example
See the relationship in one view.
Revenue$1 500
Cost$1 000
Cost divisor$1 000
ROI50%
0.5
Revenue exceeded the entered cost by $500, which is 50% of the $1 000 cost.
Compare metrics
ROI and ROAS answer different questions.
ROI
- Measures
- Revenue less cost, relative to cost
- Formula
- (Revenue − Cost) / Cost
- Cost scope
- Defined by the values entered
Useful for expressing the return associated with a defined investment scope.
ROAS
- Measures
- Attributed advertising revenue relative to ad spend
- Formula
- Advertising revenue / advertising spend
- Cost scope
- Advertising spend only
Useful for understanding attributed advertising revenue per unit of ad spend.
Important context
ROI depends on the cost definition you use.
This calculator performs the stated formula on the values you enter. It cannot determine whether those values include every cost or consideration relevant to your decision.
ROI may not account for:
Costs outside the chosen scope
Taxes, fees, salaries, overhead, financing costs, returns, or opportunity cost.
Timing and cash flow
When revenue and costs occur, payment terms, and the time value of money.
Risk and attribution
Uncertainty, attribution choices, and outcomes not represented by revenue.
Use carefully
Common ROI calculation mistakes.
Comparing revenue and cost from different periods can distort the result.
Excluding relevant costs changes what the resulting ROI represents.
Both input values must use the same currency; this tool does not convert them.
Answers
Frequently asked questions
What is ROI?
ROI means return on investment. It expresses the difference between revenue and cost as a percentage of cost. The result is only meaningful when the revenue, cost definition, and time period describe the same investment.
How is ROI calculated?
Subtract cost from revenue, divide the result by cost, and multiply by 100. The decimal result is the same relationship before it is multiplied by 100.
What does a positive ROI mean?
A positive ROI means the revenue entered is higher than the cost entered. It does not, by itself, establish whether every relevant cost, tax, liability, or risk has been included.
What does a negative ROI mean?
A negative ROI means the revenue entered is lower than the cost entered. Review that both values refer to the same investment, time period, currency, and scope before using the result for a decision.
What is the difference between ROI and ROAS?
ROI compares the difference between revenue and cost with cost. ROAS compares attributed advertising revenue with advertising spend. ROAS does not subtract advertising spend from revenue or include broader costs unless they are part of the separate analysis.
Can ROI be used to compare investments?
It can support comparison when each calculation uses a consistent revenue definition, cost definition, period, and currency. ROI alone does not represent timing, risk, cash flow, or non-financial outcomes.
Methodology
What this calculator uses.
Methodology: This calculator applies ROI_FORMULA_V1: revenue less cost, divided by cost, multiplied by 100 for the percentage result.
Data source: The calculator uses values entered by the user. It does not import exchange rates, benchmarks, external reference data, or account data.
Interpretation: The result describes the relationship between the entered revenue and cost values. It does not provide a universal rating or replace professional financial, tax, or investment advice.
Accuracy & trust
Built to be useful. Designed to be checked.
We test and review CoreBase tools, formulas, and information to keep them useful and accurate. Occasional inaccuracies or circumstances specific to your situation can still affect a result, so verify important decisions against your own requirements.
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