 # ROI Calculator

## How to Use the Return on Investment (ROI) Calculator

ROI is not always straightforward, but this calculator will do the math for you on a simple ROI question such as the outcome of an advertising campaign, business closed as a result of a trade show exhibit, or customer value gained by membership in a referral network.

Enter the total (gross) amount of money you spent (Investment) in the first box. Enter the total revenue generated as a result (Return) of the money you spent. Hit Calculate and bam!

For example: If you’re trying to determine the value of a one-year membership in a networking group or Chamber of Commerce, you’ll need to know the annual membership cost (Investment) and the total gross revenue generated by all customers referred to you in that year by group members (Return). So:

Investment: One year membership cost = \$1,000
Return: Gross revenue from all referred customers in that year: \$30,000
ROI = \$29,000

### How is ROI Calculated?

ROI equals the difference between your Return and your Investment divided by the amount of your Investment.

In other words:  ROI = (Revenue – Investment) / Investment

Remember, this is a simple ROI calculator. For more complex ROI calculations, you’ll probably want a spreadsheet with formulas to ensure you include all the relevant factors.

# Simple ROI Calculator

ROI = (Revenue - Spend) / Spend

Investment (Spend):

Revenue Generated (Return):

Spend:
Revenue: