A printable cheatsheet with calculations
and notes

Instead of calculating each ratio individually

Let our ratio tool instantly calculate your ratios. Input your financial data once and get multiple results.

Return on investment (ROI)


(Gain from investment – cost of investment)

Cost of investment

AKA: opportunity cost


Return on investment (ROI) measures how much money was made (or lost) on a project or investment as a percentage of the purchase price.

Business owners, managers, and others use this ratio to measure how well a particular project or investment performed.

Note: expanded calculation

Subtract the cost from the total income and divide it by the total cost.


Investors and managers look at the same equation differently; investors might consider a company’s gross sales and all the expenses incurred to produce or sell its product. A manager might focus instead on net sales and the cost of goods sold.

For example, if a business owner invests money in an advertising campaign, he later calculates the ROI to be 200%. This means a ratio of 2:1; for every $1 invested into marketing, two additional dollars were generated.


Generally, if the money generated exceeds the amount spent, a business could consider it an acceptable ROI. If the calculation produces a zero means the investment would break even.



ROT: Rule of thumb
HA: Historical Average (organization’s historical average)
PG: Peer Group average
EB: Economic Benchmark

DISCLAIMER: The interactive calculators on this site are self-help tools intended to help you visualize and explore your financial information. They are not intended to replace the advice of a qualified professional. Because each business is different, we can not guarantee accuracy.