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How to Calculate ROI (Return on Investment) for Small Business

Published on November 8, 2025

ROI is the universal metric for "Is this worth it?" It measures the efficiency of an investment.

The Simple Formula

((Net Profit from Investment - Cost of Investment) / Cost of Investment) x 100

Example: You spend $1,000 on ads. Those ads generate $1,500 in sales.
Profit: $500.
(500 / 1000) * 100 = 50% ROI.

If your ROI is negative, you are losing money. If it's positive, you are growing. Use our ROI tools to check your numbers.

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