Marketing Campaigns
Compare total campaign revenue or attributable value with media, agency, creative and fulfilment costs.
Work out the return on an investment, project, marketing campaign, equipment purchase or business initiative. Enter what you invested and what you received back to see net return, ROI percentage and annualised return.
Total amount spent on equipment, a campaign, stock or initiative.
Revenue, proceeds, savings or measurable financial value generated.
Implementation, maintenance, hosting or other relevant costs.
Used to calculate annualised return.
Your chosen hurdle rate for comparison.
The return has not recovered total costs.
Value received equals capital invested.
The investment generated a net surplus.
How changing total value affects your current cost base.
| Total Return | Net Return | ROI |
|---|---|---|
| $8,800.00 | −$2,200.00 | −20.00% |
| $11,000.00 | $0.00 | 0.00% |
| $12,100.00 | $1,100.00 | +10.00% |
| $14,000.00 Current | $3,000.00 | +27.27% |
| $15,950.00 | $4,950.00 | +45.00% |
Value required to achieve common targets on your current investment.
| Target ROI | Required Return | Required Surplus |
|---|---|---|
| 10.0% | $12,100.00 | $1,100.00 |
| 20.0% | $13,200.00 | $2,200.00 |
| 30.0% Target | $14,300.00 | $3,300.00 |
| 50.0% | $16,500.00 | $5,500.00 |
| 100.0% | $22,000.00 | $11,000.00 |
A fabrication business considers a machine costing $25,000, plus $2,000 installation. It expects $34,000 in added value over eighteen months.
Total investment = $25,000 + $2,000 = $27,000
Net return = $34,000 − $27,000 = $7,000
ROI = ($7,000 ÷ $27,000) × 100 = 25.93%
25.93% ROI
A useful first comparison before financing, timing and risk are considered.
Evaluate capital efficiency across common business initiatives.
Compare total campaign revenue or attributable value with media, agency, creative and fulfilment costs.
Test machinery, vehicle and fit-out returns against purchase, installation and maintenance costs.
Measure labour savings and added capacity against licensing, implementation and training costs.
Compare launch revenue with product development, stock, packaging and go-to-market costs.
Assess renovations, relocations and operating improvements against their measurable value.
Important distinctions when comparing or presenting ROI figures.
Profit is the absolute dollar surplus. ROI measures how efficiently invested capital produced that surplus, allowing differently sized projects to be compared.
Gross margin measures gross profit as a share of revenue. ROI measures net return against the capital invested and may exceed 100% or become negative.
Annualising adjusts returns to a common yearly period. Simple ROI does not model the timing of individual cash flows, inflation or the time value of money.
A negative result reveals unrecovered capital. A zero investment cannot produce a meaningful ROI percentage, so enter all relevant costs.
Total Investment
Initial Cost + Additional Costs
Net Return
Total Return − Total Investment
ROI Percentage
(Net Return ÷ Total Investment) × 100
Target Return
Total Investment × (1 + Target ROI)
Calculate gross profit from revenue and direct costs.
Work out margin from cost and selling price.
Analyse gross margin and target pathways.
Set a selling price from costs and target margin.
Add, remove or identify Australian GST.
Common questions about return on investment calculations.
ROI stands for Return on Investment. It is a standard performance measure used to evaluate the efficiency and profitability of an investment or compare several investments. In simple terms, it calculates the net monetary return relative to every dollar initially spent.
Test pricing and margins to see how changes in revenue and costs affect your business outcomes.
Open Selling Price CalculatorThis calculator provides estimates from the values entered and does not account for financing structures, tax, depreciation, inflation, risk or the timing of individual cash flows. It is not financial, tax or investment advice.