ROI calculator
Whether it was an ad campaign, a piece of software, or a hire — was it actually worth it?
What this tool does
ROI is the question every spending decision should answer. We paid X for the thing. We got Y back. Was it worth it? Most founders never run this math after the fact — they remember the cost (because it hurt) but forget to attribute the return (because it came slowly). Run the numbers six months later and many "investments" turn out to be expenses in disguise.
How to use it
- Enter the total amount you invested — the sticker price plus any hidden costs you had to pay to make it work.
- Enter the total return you can attribute to that investment — extra revenue, cost savings, time saved valued at your hourly rate.
- Optionally enter the number of months over which the return arrived. The calculator will give you an annualised ROI to compare against other investments.
Why it matters
A 50% ROI sounds great until you learn it took three years to earn. Annualised ROI is the only fair way to compare a fast win against a slow compounder. Track this number every time you spend money on something the business doesn't strictly need — within a year you will have a brutally honest view of which kinds of investments pay off in your business and which never do.
Questions people actually ask.
What's a good ROI?
Depends on risk and time horizon. A risk-free annual ROI above 5% beats keeping cash in the bank. For risky bets (new product line, untested ad channel), expect 100%+ ROI within a year to justify the risk you took.
Should I include my time as a cost?
Yes. Time is the most expensive resource a founder has, and ignoring it is how you end up with "profitable" projects that quietly eat your year. Value your time at what you'd pay someone else to do the work, and add it to the cost side.
Why does annualised ROI matter?
Because a 30% return in 6 months crushes a 30% return in 3 years, but they look identical at first glance. Annualising lets you compare investments on equal footing — a 30%-over-6-months investment is a 69% annualised ROI; the 3-year version is only 9%.