How to calculate ROI?

In this lesson you can learn how to calculate ROI in Excel.

ROI stands for return on investment. ROI is a profitability indicator which is used to measure the efficiency of the company, regardless of the structure of its assets or extraordinary factors.

To calculate ROI in Excel first you need some data. You need net profit and cost of investment.

Copy and paste this formula in cell D2: =C2/B2

Excel ROI calculate

This formula will calculate the ROI for the investment data you place in cells B2 and C2 and is based on this formula:

ROI = Net Profit / Cost of Investment

Remember to format ROI as Percentage. Click D2 cell > click CTRL + 1 keyboard shortcut > click Percentage with 2 decimal places

ROI percentage formatting

Downloand free sample spreadsheet here