ROI: Return on Investment

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What does ROI mean? ROI means return on investment and measures the percentage profit in relation to the total costs incurred. Where is ROI used? ROI is used in almost all areas of marketing and business management to evaluate the profitability of projects, campaigns or investments. What is a good ROI? A good ROI depends heavily on the sector and type of investment. Generally speaking, the higher the ROI, the more profitable the measure is. Many companies aim for a positive ROI of at least 10 % to 30 %.

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ROI simply explained

Formula: How do you calculate the return on investment?

  • ROI = (profit – investment costs) / investment costs × 100

Example ROI

To calculate the ROI, subtract the investment costs from the profit and divide the result by the investment costs. The value is then multiplied by 100 to obtain the percentage ROI.

How to calculate the ROI

This allows you to calculate the return on investment (ROI):

  • Investment costs: € 5,000
  • Profit generated: € 7,500
  • Formula: ROI = (profit – costs) / costs × 100
  • Calculation: (€ 7,500 – € 5,000) / € 5,000 × 100 = 50 %
  • Result: The ROI is 50%

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