Answers

ROI Calculator answers

Return on Investment measures gain relative to cost, usually as a percent. If you spend Rs 1 lakh and earn Rs 1.3 lakh net, ROI is 30% on that spend.

Margin, break-even, ROI, ROAS, CAC, CLV and commission formulas are the same in the US, UK, EU, Australia, Canada and India. What changes is the currency and whether GST, VAT or sales tax sits inside the price you typed. Say which costs you included before you compare two campaigns or two prices.

A worked check

Sell at 100, spend 60 on the product and 10 on ads, and profit is 30. Margin is 30%. ROAS on the ads is 100 / 10 = 10, which can look excellent while the margin is ordinary. Add 20% VAT on a VAT-exclusive price and the customer pays 120, but that 20 is not profit.

01. What is ROI in business?

Return on Investment measures gain relative to cost, usually as a percent. If you spend Rs 1 lakh and earn Rs 1.3 lakh net, ROI is 30% on that spend.

Open the ROI Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

02. How is ROI different from profit margin?

Margin is profit per rupee of sales. ROI is return on the money you invested in a project, ad campaign or equipment purchase.

Open the ROI Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

03. What costs should I include in ROI?

Include all cash and time-valued costs: ads, inventory, shipping, tools and setup labour. Omitting costs inflates ROI.

Open the ROI Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

04. What is a good ROI for digital marketing?

Positive ROI after all costs is the baseline. Compare channels by ROI and scale what works, but watch attribution limits on multi-touch journeys.

Open the ROI Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

05. Annualised ROI vs simple ROI?

Simple ROI ignores how long money was tied up. A 20% return in one year beats 20% over five years. Annualise when comparing long projects.

Open the ROI Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

06. Can ROI be negative?

Yes. If returns are below spend, ROI is negative and you lost money on that investment. Track periods separately to learn faster.

Open the ROI Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

07. Is ROI from this tool verified by an auditor?

No. You supply figures. Use for internal decisions; formal reporting needs proper accounts.

Open the ROI Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

08. Is this ROI calculator free for businesses?

Yes. No login or subscription. Run campaigns and project numbers anytime.

Open the ROI Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

Keep going

These pages explain the arithmetic. They are not a loan approval, tax filing, insurance quote or investment recommendation.