How To Create An Roi Calculator

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What is the ROI Calculator Excel?
Why Calculate ROI?
ROI Calculator Excel Template
ROI Calculator Excel Template 2

Microsoft makes it easy to determine the financial benefits of any investment or asset with its ROI calculator Excel. The spreadsheet software accurately calculates your return on investment (ROI) without needing complicated math. You can use the ROI Excel calculator to gauge the success of your content marketing campaigns and adjust your strategy to improve performance. In this article, we will explain what the ROI calculator Excel is and how to calculate ROI in Excel.

What Is the ROI Calculator Excel?

The ROI calculator Excel, sometimes called the ROI formula calculator, is a method that uses Microsoft Excel to find an investor's gain or loss compared to the cost of their investment. The higher the ROI calculated, the better the investment. People appreciate the return on investment calculator Excel because it is simple to use, and its results are easily understood.

Why Calculate ROI?

You can use Excel's ROI calculator to decide whether to accept or reject an investment opportunity. You can also use the ROI calculator after investing to determine whether you made a sound choice. You can use this information to make similar investments or adjust your investment strategy in the future. For example, if a piece of content marketing did not yield optimal results, you might follow viral content trends or invest in professional content promotion next time.

You could also examine the ROI on several projects. You could use this information to determine which projects are the most successful and pick the ones that deserve priority resources, such as funding and time.

Many leaders use ROI to show other people, such as company stakeholders and department heads, how successful an investment is. An ROI is easily understood, even if these people have little understanding of the investment. You might use ROI figures to build support for investment projects that you're passionate about.

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Methods for Calculating ROI in Excel

With the ROI calculator in Excel, you can calculate your ROI using four different formula methods:

Net income: ROI is the net income as a percentage of the original investment value.
Capital gain: ROI is the simple percentage gain or loss made on a share or other investment. It compares the current share price with the original price.
Total return:ROI is the percentage gain or loss made on a share or other investment, considering the current share price, original price, and any dividends.
Annualized return: ROI is the average annual percentage gain or loss made on a share or investment since investing.

How to Calculate Your ROI With Microsoft Excel

While Microsoft Excel helps you calculate ROI with four different formula methods, the net income method is the simplest and most useful for measuring the return on content investment. Follow these steps to calculate your ROI with Microsoft Excel using the net income method.

1. Open Microsoft Excel and a New Workbook

Open Microsoft Excel on your desktop computer or mobile device. If you don't have Microsoft Excel, download and install it from the Microsoft website. If you've never used the program before, you may want to accept a free trial to assess Excel and its value for your business. After you open the program, start a blank workbook.

2. Label Your Spreadsheet Cells

Label the cells across the top of the Excel spreadsheet. The labels will help you know which figures you'll use for your ROI calculation. Use the following labels or similar:

Content Investment (A1)
Sales From Content (B1)
Amount Gained (C1)
ROI (D1)

3. Enter Your Content Investment Amount

In cell A2, type the dollar sign and the amount you invested in your content. For example, if your content costs $5,000, enter "$5,000" into cell A2.

4. Enter the Money Generated From Your Content

In cell B2, type the dollar sign and the amount of money generated from content. For example, if your content brought $7,000 into your company, type "$7,000" into cell B2.

5. Calculate the Amount Gained or Lost From Your Investment

As you invested in the content, the amount in B2 is not your total profit or loss. You can calculate this by entering the simple ROI formula Excel "=B2-A2" into cell C2. You can also type the equals sign, then click on cell B2, type the minus sign, and click on cell A2.

Notice the way that the colors of the cell references in your formula match the color of each cell's highlights. This color referencing confirms your cell selection. Press enter and Excel should calculate the amount gained or lost.

If your formula does not calculate, check the following:

Calculations are set to automatic: Check this under the Formulas tab. If required, change calculations from manual to automatic.
The Show Formulas button is deactivated: You can also check this under the formulas tab. If the button is active, click it to deactivate it.
The formula cell is set to currency: Check this under the Home tab. If the cell containing your formula is set to text, change it to general. Double-click on the cell and press enter to recalculate.
There's no space before the equals sign: Double-click on the cell and delete any spaces before your formula.
There's no apostrophe before your formula: Accidentally typing an apostrophe makes Excel store your formula as text. You won't see your apostrophe in the cell on your spreadsheet, but if you see one in the formula bar, delete it and recalculate.

6. Enter the ROI Formula

In cell D2, type the ROI formula "=C2/A2" and press enter. This formula divides the value in cell C2 by the value in cell A2. If your formula does not calculate, go through the troubleshooting steps above.

7. Convert your ROI to a Percentage

Once you have your ROI as a decimal point, convert it to a percentage. Percentages are better understood. Highlight cell D2 and click the percentage icon, under the Home tab, to convert the decimal to a percentage.

ROI Calculator Excel Template

Use this Excel ROI template to calculate your own return on investment. Feel free to adjust the cell labels in this ROI Excel template to suit your own calculations. You could also create a much larger Excel spreadsheet that shows the ROI on multiple investments or the ROI on investments over time.

	A	B	C	D
1	Content Investment	Sales from Content	Amount Gained	ROI
2	$Content	$Sales	=B2-A2 ($)	=C2/A2 (%)

ROI Calculator Excel Template 2

This example of a completed Excel template calculating ROI can help you see how the formula works. Note that this example features the calculated numbers after the user pressed enter, rather than the formulas shown in the template.

	A	B	C	D
1	Content Investment	Sales from Content	Amount Gained	ROI
2	$5,000	$7,000	$2,000	40%

Knowledge Base: Measurement