Include every cost
For marketing, include ad spend, agency fees and staff time. For property, include taxes and maintenance.
Find out whether an investment, campaign or purchase paid off. Enter what you put in and what you got back, and optionally how long it took, to see your ROI and annualised return.
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Return on investment measures how much you gained or lost compared with what you put in. The formula is ROI = (final value − amount invested) ÷ amount invested × 100. A 5,000 investment that returns 7,200 has an ROI of 44%.
Plain ROI ignores time, which can be misleading. A 44% return over two years is very different from 44% over ten. Annualised ROI, sometimes called CAGR, converts the result into an equivalent yearly growth rate so you can compare options fairly.
For marketing, include ad spend, agency fees and staff time. For property, include taxes and maintenance.
Use annualised ROI when comparing investments that ran for different lengths of time.
A high ROI with high risk may not beat a slightly lower, steadier return.
Measure each channel separately so you know where to spend more.
It depends on the risk and the alternatives. Compare your result with what the same money could earn elsewhere over the same period.
Use the revenue or profit generated by the campaign as the amount returned, and all campaign costs as the amount invested.
The constant yearly rate that would turn your investment into its final value over the same number of years.
Yes. A negative ROI means you got back less than you invested.
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