Calculators/Business Planning & Investment/ROI Calculator
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ROI Calculator

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.

Investment Parameters

AUD $

Total amount spent on equipment, a campaign, stock or initiative.

AUD $

Revenue, proceeds, savings or measurable financial value generated.

Optional
AUD $

Implementation, maintenance, hosting or other relevant costs.

Used to calculate annualised return.

Optional
%

Your chosen hurdle rate for comparison.

Return on Investment Spectrum

Commercial outcome at a glance
+27.27%
Below 0% ROI

The return has not recovered total costs.

0% Break-even

Value received equals capital invested.

Above 0% ROI

The investment generated a net surplus.

Sensitivity Model: Varying Return

How changing total value affects your current cost base.

Total ReturnNet ReturnROI
$8,800.00 −$2,200.00−20.00%
$11,000.00 $0.000.00%
$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%

Target ROI Matrix

Value required to achieve common targets on your current investment.

Target ROIRequired ReturnRequired 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
Worked Australian Case Study

Equipment Acquisition Scenario

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.

What Can You Use an ROI Calculator For?

Evaluate capital efficiency across common business initiatives.

Marketing Campaigns

Compare total campaign revenue or attributable value with media, agency, creative and fulfilment costs.

Equipment Purchases

Test machinery, vehicle and fit-out returns against purchase, installation and maintenance costs.

Software & Automation

Measure labour savings and added capacity against licensing, implementation and training costs.

New Product Launches

Compare launch revenue with product development, stock, packaging and go-to-market costs.

Premises & Workflow Systems

Assess renovations, relocations and operating improvements against their measurable value.

Strategic Financial Nuance

Important distinctions when comparing or presenting ROI figures.

ROI vs Profit: Why Scale Matters

Profit is the absolute dollar surplus. ROI measures how efficiently invested capital produced that surplus, allowing differently sized projects to be compared.

ROI vs Gross Margin

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.

Annualised ROI & Timing

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.

Negative ROI & Zero-Cost Validation

A negative result reveals unrecovered capital. A zero investment cannot produce a meaningful ROI percentage, so enter all relevant costs.

Formula Transparency & Disclosure

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)

Related Australian Business Calculators

Frequently Asked Questions

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.

Understand the return. Now understand what drives it.

Test pricing and margins to see how changes in revenue and costs affect your business outcomes.

Open Selling Price Calculator

General information only

This 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.