Cernarus

ROI Calculator

This ROI calculator supports multiple standard approaches so you can match the method to your use case: quick percentage estimates, annualized returns for multi‑year projects, discounting for time value of money, and payback analysis.

Use the Simple ROI for single‑period or high‑level comparisons. Use Annualized ROI (CAGR) to compare investments over different horizons. Use NPV‑adjusted ROI and Payback to account for timing, discount rates, and cash flow profiles.

Updated Nov 27, 2025

Basic percentage return: (Total Benefit − Total Cost) / Total Cost. Use for single‑period projects or high‑level estimates.

Inputs

Results

Updates as you type

Simple ROI (%)

50.00%

OutputValueUnit
Simple ROI (%)50.00%—
Primary result50.00%

Visualization

Methodology

Simple ROI = (Total Benefit − Total Cost) / Total Cost. This is a high‑level metric and does not account for timing or risk.

Annualized ROI (CAGR) converts a multi‑year growth into an annual rate: (Final / Initial)^(1 / Years) − 1. This allows apples‑to‑apples comparisons across different time horizons.

NPV‑Adjusted ROI discounts future benefits to present value using a discount rate that reflects the opportunity cost or project risk; NPV = Present Value of Benefits − Initial Investment, and NPV‑adjusted ROI = NPV / Initial Investment.

Payback Period = Initial Investment / Annual Cash Flow. For uneven cash flows, prefer a discounted payback or full NPV analysis.

Expert Q&A

Which method should I use?

Choose Simple ROI for quick comparisons, Annualized ROI when comparing investments with different durations, NPV‑adjusted ROI when timing and discounting matter, and Payback when liquidity and recovery time are primary concerns.

How do I pick a discount rate?

Select a discount rate that reflects the opportunity cost of capital and project risk. Public agencies often reference government guidance; private firms use weighted average cost of capital (WACC) or required rates set by finance teams. Run sensitivity checks across a range (e.g., 5%–15%).

Can I include taxes, depreciation, and inflation?

Yes. For greater accuracy, convert all cash flows to either nominal or real terms consistently, net of taxes and depreciation where appropriate. If you include inflation in revenue projections, use a real discount rate or remove inflation from both discounting and cash flows to avoid double counting.

How accurate is the calculator?

This tool provides estimates based on user inputs and the selected method. Accuracy depends on input quality and assumptions. Use conservative inputs, document assumptions, and supplement calculations with project‑level financial models for material decisions.

Can I use this for public sector projects or grant applications?

Yes, but follow applicable public guidance for discounting, cost‑benefit analysis, and reporting. For federal projects, consult official guidance on discount rates and benefit valuation and apply agency‑specific rules where required.

How should I present results to stakeholders?

Show multiple metrics (e.g., Simple ROI, Annualized ROI, NPV, Payback) with clear assumptions, ranges from sensitivity analysis, and key caveats (tax treatment, inflation, timing). This improves transparency and decision quality.

Sources & citations