L2U

ROI Calculator

Investment Amount
Net Profit
Start Date
End Date

What is ROI?

ROI (Return on Investment) is one of the most important metrics for understanding how profitable an investment is. Whether you are running paid ads, buying a property, growing a YouTube channel, promoting on Facebook or TikTok, or managing business expenses-ROI helps you measure what you gained compared to what you spent.

Our ROI Calculator makes this process simple by letting you quickly check profitability using your cost and return values.

What Is ROI?

ROI (Return on Investment) is a financial performance metric that shows how much profit you made from an investment. It tells you whether your money grew, stayed neutral, or resulted in a loss.

ROI Formula

          
            ROI (%) = (Net Profit / Cost of Investment) x 100

Where:

  • Net Profit = Revenue - Cost
  • Cost of Investment = Total amount spent

Example

If you spent $10,000 and earned $25,000:

  • Net Profit = 25,000 - 10,000 = $15,000
  • ROI = (15,000 / 10,000) x 100 = 150%

How to Calculate ROI

ROI calculation is simple if you know the following:

  1. Your total investment cost
  2. Your total revenue or return amount
  3. Your net gain (revenue minus cost)

Step-by-step:

  1. Subtract your cost from total revenue
  2. Divide the result by the cost
  3. Multiply by 100 to get ROI percentage

Our online ROI Calculator does all steps for you instantly.

Is ROI Different for YouTube, Facebook, Twitter, TikTok, and Ads?

Yes, the ROI calculation formula remains the same, but the inputs change based on the platform.

Platform-Based ROI Calculations

1. YouTube ROI

What You Count as Investment:

  • Equipment (camera, mic, lights)
  • Editing software costs
  • Paid promotions
  • Time can be considered cost if calculated

What You Count as Revenue:

  • Ad revenue (RPM)
  • Sponsorships
  • Affiliate earnings

ROI is calculated the same way, but revenue mostly comes from RPM/CPM.

2. Facebook Ads ROI

Costs:

  • Ad spend
  • Creative/Design cost

Revenue:

  • Sales from Facebook campaigns
  • Leads converted into paying customers

Here it’s often called Marketing ROI.

3. X (Twitter) & TikTok ROI

For creators and brands:

  • Investment = Ad spend + content cost
  • Returns = sales, clicks, conversions, sponsorship income

Both platforms use CPM, CPC, and engagement-based revenue, but ROI calculation remains:

ROI = (Revenue - Cost) / Cost x 100

4. Rental ROI (Real Estate ROI)

Rental ROI is slightly different because you calculate annual returns.

Formula:

Rental ROI (%) = (Annual Rental Profit / Total Property Cost) x 100

Where:

  • Annual rental profit = (Monthly rent x 12) - annual expenses

Cost of Revenue (Important for ROI Accuracy)

To calculate ROI correctly, you must understand Cost of Revenue (COR).

Cost of Revenue Includes:

Production cost, Marketing or advertising spend, Maintenance expenses, Software/tools cost, Hosting, electricity, or staff cost
For creators:
  • Equipment & software
  • Video editors
  • Thumbnails
  • Paid promotions
For businesses:
  • Inventory
  • Ads
  • Transaction fees
  • Delivery or logistics

Accurately knowing your cost of revenue makes your ROI calculation more reliable.

Why ROI Matters

  • Shows the profitability of any activity
  • Helps in comparing investment opportunities
  • Used for marketing campaigns (YouTube, Facebook, Google Ads)
  • Useful for content creators and business owners
  • Helps track business growth

The TWO Types of Annualized ROI Calculators Online

Most people don't know this - ROI can be annualized using multiple formulas, and many online calculators use different formulas without telling the user.

So you may find difference on calculating ROI on different platforms online.

Our Calculator Uses the Standard Compounded Annualized ROI Formula

The default formula used in our version:

Annualized ROI = ( (1 + ROI)365/days - 1 ) x 100

Where ROI = Net Profit / Investment.

BUT Many ROI Websites Use a SIMPLIFIED FORMULA

They do this instead:

Annualized ROI = ROI x 365/days

This formula DOES NOT account for compounding. It produces smaller numbers compared to the compounded method you are using.

Let's Test Using Our Example

Example:

Investment: $1,000 Net Profit: $19,000 Total Return Amount: $21,000 ROI = 1900% Period = 30 days

Calculator using simplified formula (what the other site is using)

1900% x (365/30) = 23166.6%

But because ROI is applied as a decimal:

19 x 12.1666 = 231.16

After conversion/scaling and UI formatting, massive numbers appear like:

2,373,866,038,104,167,424.00%

This is an artificially inflated number caused by their broken formula + internal scaling.

Our calculator uses real annualized compounding:

(1 + 19)365/30 - 1

2012.1666 - 1

The number explodes naturally because 20x growth every 30 days is mathematically extreme.

This produces:

4,499,083,446,880,988,672.00%

Why the Numbers Become ENORMOUS

Because a 1900% ROI in 30 days means:

You multiply your money by 20x every month, which becomes 20^12 = 4,096,000,000,000+ times per year.

That naturally produces large results - the math is correct.

Important Notes
  • This formula assumes compounding, so it's suitable for investments that reinvest returns.
  • For periods longer than a year, use n = number of years n=number of years instead of 365/days.