How do YOU calculate ROI%?

crossfittn

crossfittn

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Feb 4, 2007
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So, how do you calculate ROI%? If you spend $50,000 and make $100,000 revenue, do you consider that 100% ROI?

Apparently it's controversial so I want to make sure we're calculating it right in this app I'm building for my SEO money sites.. I was testing today and it was telling me 1% ROI% when I said I made $1000 revenue on a $500 spend. Apparently that's the traditional way, but I prefer calling that 100% ROI... What about you?
 


How is $1000 on $500 spend 1%? I don't even know how someone would calculate a 100% return as only 1%.

And yeah, I calculate as a percentage of expenses, so $100k revenue on $50k spend is 100% ROI. I don't know why people get so hung up on the semantics. If it makes money, it's good, if it doesn't when do you expect it to and is it worth the work/wait/expense.
 
Ugh, fuck bean-counter peasants and their terminology - focus on the hustle.
 
Uhg this is actually a pet peeve of mine. The ROI is exactly what it stands for, the return on your investment. If you invest a $100 and it returns a $100. You returned a 100% of your investment (broke even). $150 returned on $100 investment is a 150% ROI

If at any point you find yourself with a negative ROI and thus you somehow lost more money than you invested, you're doing something wrong :)
 
"If you spend $50,000 and make $100,000 revenue, do you consider that 100% ROI? "

It has nothing to do with revenue. Well it does, but first you have to deduct expenses. So it's basically profit/investment. You made $1 on a $5 investment, that's 20% ROI.
Your example of $50k spending and $100k revenue is not enough to calculate ROI. What is the profit?
 
haha MandLoys.... $100k revenue minus $50k spend = $50k profit...

Thanks for the responses guys - you are calculating exactly how I do.. So I'll get it fixed to show 100% ROI if you spend $100 and make $100.

App is being fixed. lol@1%
 
Deliguy said:
Uhg this is actually a pet peeve of mine. The ROI is exactly what it stands for, the return on your investment. If you invest a $100 and it returns a $100. You returned a 100% of your investment (broke even). $150 returned on $100 investment is a 150% ROI
Click to expand...

Wouldn't that definition mean that if an investment company offers you a 15% ROI, they are offering to lose money for you?
 
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