GuideCalculatorDetailed Guide

How to Build a ROI Calculator

Return on Investment (ROI) measures the profitability of an investment relative to its cost. An ROI calculator helps businesses evaluate projects, campaigns, and spending decisions.

What is a ROI Calculator?

ROI expresses profit as a percentage of the investment. Positive ROI means the investment generated profit; negative ROI means a loss. ROI enables comparison across different investment types and time periods.

The Formula

ROI = ((Gain from Investment - Cost of Investment) / Cost of Investment) × 100
Annualized ROI = ((1 + ROI)^(1/years) - 1) × 100
Marketing ROI = (Revenue from Campaign - Campaign Cost) / Campaign Cost × 100

Code Example

JavaScript
function calculateROI(gain, cost) {
  if (cost === 0) return 0;
  return ((gain - cost) / cost) * 100;
}

function calculateAnnualizedROI(totalROI, years) {
  if (years === 0) return 0;
  const decimal = totalROI / 100;
  return (Math.pow(1 + decimal, 1 / years) - 1) * 100;
}

function calculateMarketingROI(revenue, cost) {
  if (cost === 0) return 0;
  return ((revenue - cost) / cost) * 100;
}

How to Build It

  1. 1

    Create inputs for initial investment and returns

  2. 2

    Add time period for annualized calculations

  3. 3

    Implement basic and annualized ROI formulas

  4. 4

    Add comparison tool for multiple investments

  5. 5

    Include break-even analysis

Key Features to Include

Basic and annualized ROI calculations

Side-by-side investment comparison

Break-even point calculation

Risk-adjusted ROI (optional advanced feature)

Export for business cases and presentations

Monetization Strategies

Freemium: basic free, advanced comparisons paid

Embed in business planning tools

Lead generation for financial advisory

White-label for banks and investment platforms

Recommended Tech Stack

Frontend

React with comparison charts

Backend

Client-side calculations; API for saving scenarios

Hosting

Static hosting (Vercel, Netlify) for cost efficiency

Related Keywords (27 in database)

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