Business ROI Calculator
Calculate your business Return on Investment, annualized ROI, and payback period.
Essential for evaluating business decisions.
Business ROI
ROI (Return on Investment) measures the profitability of an investment relative to its cost.
ROI = ((Net Profit - Investment Cost) / Investment Cost) × 100
Annualized ROI accounts for the time period:
Annualized ROI = ((1 + ROI/100)^(1/years) - 1) × 100
Payback Period is how long it takes to recoup your investment:
Payback Period = Investment Cost / Annual Net Profit
ROI benchmarks by business type:
- Conservative investments: 5-10% annually
- Growth businesses: 15-25% annually
- High-risk startups: 25-50%+ annually (or total loss)
- Marketing campaigns: 200-500% is considered excellent
Example: $50,000 investment yielding $75,000 net profit over 3 years:
- ROI: 50% total
- Annualized ROI: 14.5%
- Payback period: 2 years