Calculate your ROI
Frequently Asked Questions
How do you calculate ROI?
ROI (Return on Investment) is calculated by comparing the profit you make to the amount you spent.
For example, if you spent £1,000 on ads and generated £3,000 in revenue, this means that your ROI would be 200%, or you made £2 back for every £1 spent.
How do you calculate ROI?
A “good” ROI depends on the type of business, industry, and risk involved. In general:
- For most businesses, an ROI of 10–30% annually is considered healthy.
- For marketing and advertising campaigns, businesses often aim for an ROI of at least 200% (2:1 return), meaning you get £2 back for every £1 spent.
- High-growth or high-risk industries (like start-ups or tech) may target much higher returns to justify the investment risk.
Ultimately, a good ROI meets or exceeds your company’s goals, covers costs, and provides sustainable profit growth compared to alternative investments.