Measure the return on any business investment to make smarter spending decisions.
ROI
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Return on Investment (ROI) measures the efficiency of an investment by comparing the gain to the cost. A positive ROI means the investment generated more than it cost. The annualized ROI normalizes returns to a yearly basis for comparing investments of different durations. The payback period shows how long until the investment pays for itself.
Any positive ROI means you made money. For business investments, aim for at least 15-25% annual ROI. Marketing campaigns should target 300-500% ROI. Compare against alternatives: if a savings account yields 4%, your investment should significantly exceed that.