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ROI BasicsPublished June 4, 2025

Free ROI Calculator: How To Calculate Return On Investment

ROI β€” or Return on Investment β€” tells you how much value you gained compared to what you spent. It’s typically expressed as a percentage, and it helps you figure out whether a decision was worthwhile, and how different options stack up.

πŸ“– 5 min read‒⭐ Updated for 2025

How ROI Works

The formula is simple:

ROI = (Net Profit / Cost of Investment) Γ— 100%

Net profit is just the difference between what you earned and what you spent. For example, if you invest $5,000 in something and it returns $6,000, your net profit is $1,000. Divide that by the cost ($5,000), and you get 0.2 β€” or 20% ROI.

Why It’s So Widely Used

  • βœ… It’s easy to understand and communicate
  • βœ… It works across departments and industries
  • βœ… It lets you compare very different projects side by side
  • βœ… It highlights whether something is worth doing at all

But What About The Calculation?

Many people still open Excel to calculate ROI manually. But that's slow, error-prone, and not always easy to review, update, and share. Reschematic changes that.

How Reschematic Makes It Easier

  • 🧠 AI generates your ROI model from a simple prompt
  • πŸ“Š Inputs are structured clearly so you can review assumptions
  • πŸ”„ You can test different scenarios without rework
  • πŸ“€ The result is interactive, sharable, and presentation-ready

Whether you're pitching an internal project, justifying a tool purchase, or building a business case for funding, Reschematic helps you make your case faster and with more credibility.

What’s a Good ROI?

ROI RangeInterpretation
100% and aboveExcellent β€” strongly profitable
50% to 99%Solid return β€” likely exceeds inflation
0% to 50%Minimal return β€” maybe just breaking even
Below 0%Loss β€” time to reassess

Why Use an ROI Calculator at All?

  • 🧩 Breaks complexity into clear, reviewable parts
  • πŸ“ˆ Shows ROI as a percentage you can compare across options
  • πŸ“‹ Helps build stakeholder trust and transparency
  • πŸ’¬ Improves communication during decision-making

In short: the right ROI tool doesn't just calculate, it helps you explain. That's why Reschematic focuses not just on the modeling, but on how you transparently present the logic and assumptions behind it.

Final word: If it uses AI, how do I know I can trust it?

Trust doesn't come from hiding the AI. It comes from showing exactly what it's doing. That's why Reschematic reveals every assumption, lets you trace how each number was calculated, and gives you full control to make changes. It works like a spreadsheet in terms of transparency, but without the complexity. You get speed and credibility, together.

Note: Max tier subscribers see the sources of assumptions, further enhancing confidence.

Aaron Kosovich

Aaron Kosovich

Founder, Reschematic

Aaron builds tools that help teams stop puzzling over spreadsheets and start making real decisions. He previously led economic analysis on over $1 billion in infrastructure funding, yet still believes clarity is more powerful than complexity.

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