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Business calculator

ROI calculator

Measure the gain relative to what you spent.

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Use these business calculators to check pricing, profitability, cost recovery, and growth. Start with return on investment below, or choose a dedicated tool for break-even, profit margin, markup, gross margin, contribution margin, payback, or CAGR. Each page gives you a working calculator, an official formula reference, a sourced teaching example, and practical input guidance. Your entries stay in the browser. Keep the period, units, and cost definition consistent so the result answers the question you intended to ask.

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Worked example

Figures from the official example linked below
Source itemPublished value
Initial amount$100
Amount after the first year$105
Stated annual interest rate5%

Investor.gov gives this compound-interest example. Reusing the initial and final amounts as a simple return calculation produces a $5 gain and 5% ROI. This is an educational example, not a predicted business return. Source: SEC Investor.gov: compound-interest worked example.

How it works

ROI (%) = ((total amount returned - investment cost) / investment cost) * 100

Formula basis: FGDC: net-benefit ROI definition, page 43. Ratios are converted to percentages for display. Intermediate values retain full calculation precision; displayed amounts are rounded.

Frequently asked questions

What is the break-even formula?

Divide fixed costs by selling price per unit minus variable cost per unit. The denominator is the contribution from each unit sold.

What is the profit margin formula?

Divide the chosen profit amount by revenue for the same period. Multiply by 100 to express the result as a percentage number.

What is the difference between markup and margin?

Markup uses cost as the denominator. Margin uses selling price. The same dollar difference therefore produces different percentage ratios.

What is the ROI calculator formula?

Subtract investment cost from the total amount returned, then divide that gain by investment cost. The tool expresses this ratio as a percentage.

How do I calculate payback in Excel?

Use =A1/B1 with initial investment in A1 and annual net cash inflow in B1. This works for the constant-flow model.

How do I calculate CAGR in Excel?

Use =(B1/A1)^(1/C1)-1 with beginning value, ending value, and elapsed years in those cells. Apply percentage formatting.

Sources

Data as of 2026-10-05. Examples are historical teaching examples, not current prices or market benchmarks. Calculated results are derived from entered values.