How to Use the ROI & Profit Margin Calculator
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1
Enter Total Investment Cost (Amount Invested).
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2
Enter Total Revenue (Final Value Returned).
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3
Optionally specify investment duration in years to calculate Annualized ROI (CAGR).
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4
View Net Profit, Return on Investment (ROI %), Profit Margin %, and Cost Markup %.
Practical Example & Use Case
Evaluating an advertising campaign that cost $2,500 and generated $7,200 in sales (188% ROI and 65.3% margin).
Technical Notes & Limitations
Computes standard commercial business ROI formulas: [(Revenue - Cost) / Cost] * 100.
Frequently Asked Questions
What is the difference between Margin and Markup?
Margin is profit divided by revenue, whereas markup is profit divided by cost.