ROI & Break-even Calculator interactive tool
Calculator
Result
25.00%
$2,500.00
What Is ROI & Break-even?
This business calculator covers two common planning measures: Return on Investment (ROI) and the Break-Even Point.
Return on Investment (ROI)
ROI measures the profitability of an investment relative to its cost. It is expressed as a percentage. A positive ROI means the investment yielded a profit, while a negative ROI indicates a loss. It's the standard metric used to compare the efficiency of different investments, from buying stocks to launching marketing campaigns.
The Break-Even Point
The break-even point is where total revenue equals total costs, including fixed and variable costs. At that point, the modeled activity has neither a profit nor a loss.
- Fixed Costs: Expenses that don't change based on production volume (e.g., rent, insurance, salaries).
- Variable Costs: Expenses that increase with each unit produced (e.g., raw materials, packaging, shipping).
Knowing your break-even point is essential for setting product prices and establishing sales targets.
How To Use the ROI & Break-even Calculator
- For ROI: enter initial investment and final value (or proceeds).
- For break-even: enter fixed costs, price per unit, and variable cost per unit.
- Review ROI percentage and profit, or break-even units and revenue.
ROI percentage and break-even units
This ROI calculator handles two related planning jobs: return on investment from cost and proceeds, and break-even units from fixed costs, selling price, and variable cost. Keep the cost and revenue definitions consistent when comparing scenarios.
Need the formula or convention behind this result? Read the calculator methods and assumptions.