ROI Calculator: Free Return on Investment Calculator | Simple Sheets
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ROI, ROAS, payback

Free ROI calculator

ROI Calculator

An ROI calculator compares what you put into an investment with what you got back. Use the free calculator below to get return on investment %, net profit, annualized ROI, payback months, and campaign ROAS.

The ROI formula

Use ROI = net profit / total investment cost. Net profit equals the amount returned minus the amount invested and any extra costs.

Return on Investment Calculator

Use this simple ROI calculator for marketing, CRM, project, AI, or business investments. Your numbers never leave your browser.

Marketing ROI and ROAS calculator

Use this tab for marketing ROI, SEO ROI, online marketing ROI, CRM ROI, or AI ROI when revenue attribution is available.

Compare ROI across investments

The downloadable ROI tracker lets you compare multiple projects side by side instead of calculating one static number.

Get the free ROI tracker

Download the Excel and Google Sheets version so you can keep the ROI calculator, marketing ROI calculator, annualized ROI math, and multi-row investment tracker.

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How to calculate ROI

ROI = (amount returned - amount invested) / amount invested x 100. Example: invest $10,000 and get back $13,000. Net profit is $3,000, so ROI = 3,000 / 10,000 = 30%.

ROI vs annualized ROI

Plain ROI ignores time. Annualized ROI shows the yearly rate: ((1 + ROI) ^ (1 / years)) - 1. A 30% return over 3 years is about 9.1% annualized, which makes different time horizons easier to compare.

What is a good ROI?

It depends on context and risk. Broad stock-market returns have historically averaged roughly 7% to 10% a year; a marketing campaign may need several times its spend; a software purchase is often judged on payback period.

Marketing ROI and ROAS

Marketing ROI = (revenue from campaign - campaign cost) / campaign cost. ROAS = revenue / ad spend, usually shown as a ratio like 4:1. Use ROI when profit after costs matters and ROAS for a quick revenue-per-dollar read.

ROI vs ROE vs rate of return

ROI measures profit relative to the cost of a specific investment. Return on equity measures profit relative to shareholders' equity. Rate of return usually implies a time period, so make sure you are comparing the same metric.

Is the investment actually worth it?

A positive ROI alone does not make an investment wise. Compare it against your hurdle rate or cost of capital, the minimum return you require for the risk. If ROI does not clear that bar, the money may be better used elsewhere.

The limitations of ROI

ROI is simple but blunt. It ignores risk, ignores the time value of money, and can change based on how you define cost and gain. Use annualized ROI for time comparisons and weigh risk separately.

Real-estate ROI example

For property, ROI = (annual rental profit + appreciation) / total cash invested. Put $50,000 down and net $6,000 a year after expenses, and cash-on-cash ROI is 12% before appreciation.

Can ROI be negative?

Yes. If you get back less than you put in, ROI is negative and the investment lost money. A -20% ROI means you recovered 80 cents on the dollar.

ROI calculator FAQ

What is a good ROI?

It depends on risk and alternatives. Long-run stock-market returns average about 7% to 10% a year; marketing and project ROI are judged against their own benchmarks.

What is the difference between ROI and ROAS?

ROI measures profit relative to cost after all costs; ROAS measures revenue per dollar of ad spend and ignores other costs.

How do I calculate annualized ROI?

Annualized ROI = ((1 + total ROI) ^ (1 / number of years)) - 1, which converts a multi-year return into a yearly rate.

Can ROI be negative?

Yes. A negative ROI means the investment returned less than its cost.

How do I calculate marketing ROI?

Subtract campaign cost from the revenue it generated, then divide by the campaign cost.

Is a higher ROI always better?

Not always. A higher ROI can come with higher risk or a longer time horizon, which is why annualized ROI and risk matter for comparison.

Go further with our finance and planning templates

The calculator above is free. If you want a spreadsheet you can customize and keep, these premium Excel and Google Sheets templates go further.