how to calculate roi for small business
How to Calculate ROI for Small Business
ROI helps small business owners choose investments with better return potential.
Bangladesh-focused guide with practical calculation workflow.
Step-by-Step Explanation
- Measure total gain from investment
- Subtract investment cost
- Divide net gain by cost
Formula Used
- ROI % = ((gain - cost) / cost) × 100
Example Calculation
- If campaign gain is BDT 300,000 and cost is BDT 100,000, ROI is 200%.
Common Mistakes
- Ignoring hidden costs
- Using revenue instead of profit gain
FAQ
- Is high ROI always better? Check risk and cash-flow timing too.
- Can ROI be negative? Yes when gain < cost.
Related Calculators
- Open: /calculators/roi-calculator
- Open: /calculators/marketing-roi-calculator
- Open: /calculators/investment-return-calculator