How to use the ROI calculator
- Choose one reporting period or completed investment and enter its revenue after refunds, excluding sales tax.
- Enter total product, shipping, processing and other selling costs for that same period.
- Add advertising spend separately, then enter any remaining investment or overhead once.
- Compare the ROI with the amount of profit and the period needed to earn it. Share the current scenario or reset to the example.
ROI formula and cost basis
Total investment = Operating costs + Advertising + Other investment
Profit = Revenue − Total investment
ROI (%) = Profit ÷ Total investment × 100
The margin shown alongside ROI uses revenue as its denominator. A positive margin does not mean the same percentage return on your investment. Zero revenue has no defined revenue margin.
Worked ecommerce example
Suppose sales produce $1,200 of revenue. Product and fulfilment costs total $600, advertising costs $200, and no other investment is entered. Total investment is $800, profit is $400 and ROI is $400 ÷ $800 = 50%. Revenue margin is $400 ÷ $1,200 ≈ 33.3%.
If you also allocate $200 of overhead, investment becomes $1,000 and profit falls to $200. ROI becomes 20%. This is why the costs included in the model matter more than the headline ratio.
When to use ROI rather than ROAS
Use ROAS to examine attributed advertising revenue. Use ROI to compare results after costs. To forecast a new product's ad funnel before launch, use the ecommerce profit calculator.
ROI alone does not capture cash-flow timing, inventory still on hand, risk or incremental sales. Use consistent accounting treatment when comparing scenarios. The calculation does not automatically value unsold stock or annualize returns.
Definition and source
Google Ads explains ROI using profit relative to costs. Our model makes the included cost categories explicit. Source checked October 8, 2026.
Frequently asked questions
How do I calculate ROI?
Subtract all entered costs from revenue, then divide that profit by total investment. Multiply by 100 to express ROI as a percentage.
What is the difference between ROI and ROAS?
ROAS divides advertising revenue by ad spend. ROI divides profit after the costs you include by total investment, including product and advertising costs. High ROAS can coexist with negative ROI.
Is the displayed profit business net profit?
Only if you included every relevant cost on a consistent basis. Otherwise it is profit after entered costs. Include overhead and taxes where appropriate, and avoid entering a cost twice.
Can ROI be negative or undefined?
ROI is negative when revenue is below investment. Zero revenue with positive investment gives a -100% ROI. ROI is undefined when investment is zero, so the calculator requests a positive investment.
Is this ROI annualized?
No. This is the return over the period represented by your inputs. Investments over different durations cannot be compared as annual returns using this figure alone.
By the SellerUtils team · Last updated October 8, 2026. Results are estimates for planning and are not financial advice.