B/Billable Toolkit
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ROI Calculator

Check whether a purchase or campaign paid off, and how fast.

$
$
Extra profit or savings it produced
months

Return

How it’s calculated

ROI is the net gain divided by the cost. The annualised figure converts it to a yearly rate so investments of different lengths can be compared.

ROI = (return − cost) ÷ cost annualised = (1 + ROI)^(12 ÷ months) − 1

Worked example

Spending $4,000 that brings in $6,200 over 9 months is a 55% return, about 79% a year when annualised, and it paid for itself in 5.8 months.

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Questions

What is a good ROI?

It depends on risk and time. Compare against alternatives, such as what the money would earn in savings over the same period.

Why annualise ROI?

A 50% return over three years is very different from 50% in three months. Annualising puts both on the same scale.

Doing these numbers every month? Accounting software can automate invoices, reminders and tax reports.

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