What Is Gross Margin?
Gross margin shows how much of each rupee of sales is left after the direct cost of making or buying what you sold.
Read guide →What Is ROI?
Return on investment (ROI) shows how much you gained or lost compared with what you invested, expressed as a percentage. It is used for marketing campaigns, equipment, projects and stocks alike.
ROI is simple, but it ignores time. A 35% return over one year is very different from 35% over ten, so use CAGR to compare investments held for different periods.
Formula
ROI % = (Final Value − Amount Invested) ÷ Amount Invested × 100
Example
You invest ₹1,00,000 and it grows to ₹1,35,000. Gain ₹35,000, so ROI = 35%.
Frequently asked questions
Can ROI be negative?
Yes. A negative ROI means you lost money on the investment.
What is a good ROI?
It depends on the risk and the time period. Compare it with alternatives, not with a fixed target.
More guides
What Is EBITDA?
EBITDA measures operating earnings before interest, tax, depreciation and amortization.
Read guide →Revenue vs Profit
Revenue is the money you bring in. Profit is what you keep after costs.
Read guide →BizCalc provides calculators and educational information for general informational purposes only. Results are estimates and should not be considered financial, tax, accounting or investment advice.