Marketing & Analytics
ROI (Return on Investment)
Definition
A performance metric that evaluates the efficiency of an investment by comparing net profit to the cost of the investment. Calculated as (Net Profit divided by Cost of Investment) multiplied by 100 to express as a percentage. ROI is used across all business contexts: marketing campaigns, equipment purchases, software subscriptions, and real estate. A marketing campaign that costs $1,000 and generates $3,000 in revenue has an ROI of 200%. While simple and widely understood, ROI does not account for time, so a 50% ROI over one month is very different from 50% over five years.
Related Templates
These SheetCraft templates use or relate to ROI (Return on Investment):
- Marketing Campaign Dashboard, Track multi-channel marketing campaigns, Google Ads, Meta Ads, email, and organic, with ROAS, CPA, and A/B test logging.
- Rental Property Analyzer, Evaluate rental deals with cap rate, cash-on-cash return, and 10-year cash flow projections, plus a multi-property portfolio tracker.