Free ROI Calculator

How this tool computes its result

calculateROI computes profit = revenue − cost, roi = ((revenue − cost) / cost) × 100 (0 if cost is 0), roas = revenue / cost (0 if cost is 0), profitMargin = (profit / revenue) × 100 (0 if revenue is 0), and breakEvenRevenue = cost. It then appends a canned set of text recommendations selected purely from fixed thresholds: roi < 0, roi < 100, roi < 300, roi ≥ 300 for the primary tier, plus separate bullet points if profitMargin < 10 or roas < 2 / roas ≥ 4.

Worked example

Revenue $10,000, cost $5,000: profit = $5,000, roi = (5000/5000)×100 = 100%, roas = 10000/5000 = 2.00, profitMargin = 5000/10000×100 = 50%, breakEvenRevenue = $5,000. Since roi (100) falls in the "< 300" bucket rather than "< 100", the recommendation text reads "Good ROI! Campaign is performing well." along with a scaling suggestion.

When not to use this tool

The component only shows the empty-state message when both revenue AND cost are exactly 0 (`if (revenueNum === 0 && costNum === 0) return null`). If you enter cost = 0 with a nonzero revenue, it still "calculates" — the ternary guards (`cost > 0 ? ... : 0`) mean roi and roas both silently resolve to 0 rather than surfacing an error, which misrepresents a genuinely free/organic campaign as having 0% ROI instead of flagging the input as incomplete.

Common mistakes

• - Entering cost = 0 for a campaign that did have real spend (e.g. omitting agency fees) — the divide-by-zero guard masks this as a flat 0% ROI rather than warning that cost is missing.
• - Treating the built-in recommendation thresholds (roi < 100, < 300, etc.) as universal benchmarks — they are fixed constants in the component, not calibrated to any particular industry or channel.
• - Conflating this tool's secondary ROAS tile with the dedicated ROAS Calculator — here ROAS is just revenue/cost shown alongside ROI, not the tool's primary framing.

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