ROI Calculator

Gain or Loss

Here, we define CR, one of the most important email marketing metrics. After the brief definition, we will provide you with a manual on how to use our CR calculator.

What is the ROI calculator?

We will explain, in a nutshell, what ROI means. Of course, we’ll also provide you with a brief manual on how to use our ROI calculator.

Defining ROI

How to determine ROI? It stands for return on investment. This key metric reflects the total income related to a specific investment. To put it simply, the ROI index shows profitability. It’s quite close to the ROMI that is also available in our calculators set — yet there’s a difference. The ROMI parameter is purely related to marketing costs, whereas ROI deals with a wide range of investments. So we have to consider every expense to calculate the rate of return — employees’ salaries, office rent, promotion, raw materials, taxes, software, and services… literally everything

Why is ROI vital for your business?

Calculating the ROI is necessary for any offline and online business to detect how much money invested in a teamwork, a project, or an advertisement campaign returns. It shows the vector for your business growth.

Benchmarks of a good ROI

Just like with our marketing metrics, we cannot give a one-size-fits-all answer here. Everything depends on the specific business sphere, unique features of your brand and target audience, stage of business development, current situation in the market, and so on.

But basically we can say that:

  • ROI ≥ 100% means the project is quite profitable;
  • ROI = 100% means the investments returned but didn’t bring profit and that we should analyze the project and find what impedes growth;
  • ROI ≤ 100% means the investment didn’t even pay off; we invested more than we received. It’s time to consider whether it is worth continuing with the project. But first and foremost, compare other performance indicators.

How do you know what your ROI is?
With the Stripo rate of return calculator, you can calculate it in two clicks.

How is ROI calculated?

The ROI formula is simple. Just deduct your invested amount from the returned amount; then divide this number by the invested amount and multiply the result by 100%.
How to calculate it in practice?
Here’s an example: we’ve spent $2 500 to develop a software. Soon after release, we gained $8 000 in income. According to the ROI formula, we need to deduct the invested amount from the returned amount: $8 000 – $2 500 = $5 500. Divide this by the invested amount: $5 500/$2 500 = 2.2. Convert it into percentage by multiplying it by 100, which equals 220. Our ROI index is 220%. Not bad. Want to boost incomes even more? Here’s a tip: Save time by using our ROI calculator. It’s better to spend time on business ideas that will bring you growth and prosperity!

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