ROI Calculator

Definition of ROI Calculator

A tool used to estimate the return on investment for a particular activity or investment.

Explanation of ROI Calculator

An ROI calculator is a tool used to estimate the return on investment (ROI) of a particular initiative, project, or investment. This tool helps businesses assess the potential profitability and effectiveness of their investments by comparing the expected gains or benefits to the associated costs. ROI calculators typically require inputs such as initial investment, ongoing costs, and anticipated revenue or savings. The calculator then computes the ROI as a percentage, providing a clear and concise measure of the investment’s potential value. By using an ROI calculator, businesses can make informed decisions, prioritize resources, and optimize their strategies. Effective ROI calculators require accurate data, a clear understanding of the goals and objectives, and robust analytical capabilities. By leveraging ROI calculators, companies can improve their financial performance and achieve better outcomes.

This dictionary entry was written by

Per-Gulbrand Peter Braathen

With a foundation in doctoral-level research, Per-Gulbrand Peter Braathen is a seasoned expert in the areas of marketing, branding and communication. His proficiency extends to marketing management, branding and communication strategy. Braathen's experience is underscored by his rich background from various industries, including entertainment. A distinguished alumnus of the USC Marshall School of Business, Braathen boasts a Master of Science in Marketing, complemented by a Graduate Certificate in the Business of Entertainment from the USC School of Cinematic Arts as well as two undergraduate Bachelor degrees from the esteemed University of Southern California.