ROI by Project / Business Line Calculator
Inputs
| Name | Invested | Returned | Fees | From | To | Active | Actions |
|---|
Results
How to use this multi-project ROI calculator
- Choose Use dates (per-row start/end) or Use length (enter years).
- Click Add Line and fill in Name, Invested, Returned, optional Fees, and time inputs.
- Mark a row Active to include it. Click Calculate (or press Ctrl/Cmd+Enter).
- See per-row ROI/CAGR in the table (tooltips on bars), plus portfolio totals and weighted ROI.
Formulas
Per-row ROI % = (Returned − (Invested + Fees)) ÷ (Invested + Fees) × 100. Gain = Returned − (Invested + Fees).
Years are either entered directly or computed from dates using 365.2425 days. If Invested & Returned > 0 and years > 0, CAGR = (Returned / NetInvested)^(1/years) − 1.
Weighted ROI (portfolio) = Σ Gains ÷ Σ NetInvested.
Info only — not financial advice. Consider IRR/XIRR for cash-flow-timed analysis.
Understanding ROI by Project / Business Line
ROI by project or business line helps you see which initiatives actually create value. Instead of a single blended ROI for the whole company, you break results down into manageable units—campaigns, products, regions, clients, or internal projects. This granular view makes it easier to double down on winners, fix underperformers, and have cleaner budget conversations.
What is ROI by project?
Return on Investment (ROI) expresses profit relative to cost. At the project level, we calculate ROI for each line item independently using the same core idea:
ROI % = (Returned − (Invested + Fees)) ÷ (Invested + Fees) × 100
Where Invested includes all relevant costs (e.g., build, media, tooling, onboarding), Fees captures additional charges (platform fees, contractors), and Returned is the realized return (cash in, attributable revenue, or measurable savings).
Why it matters
- Clarity: Compare projects side-by-side instead of debating blended averages.
- Prioritization: Shift budget toward projects with durable ROI and away from low-yield activities.
- Accountability: Owners see outcomes tied to their line item, encouraging better planning and post-mortems.
- Storytelling: Clear charts and per-project metrics make board updates less abstract and more actionable.
Handling time and comparability
Basic ROI is time-agnostic. To compare projects with different durations, consider CAGR (annualized return) when dates or lengths are known:
CAGR = (Returned ÷ NetInvested)^(1/years) − 1
This shows the average annual rate of return, making a 6-month pilot more comparable to a 2-year rollout.
Common pitfalls
- Partial costs: Forgetting overhead, shared tools, or support time can overstate ROI.
- Attribution drift: Using total revenue instead of attributable revenue inflates returns for multi-touch journeys.
- Shifting scope: Mid-project changes should be reflected in both cost and outcome definitions.
- One-off spikes: Promotional bumps can mislead; check sustainability and seasonality.
Portfolio view (weighted ROI)
After calculating per-project ROI, compute a weighted ROI for the portfolio:
Σ Gains ÷ Σ NetInvested.
Weighting by capital prevents small, high-ROI experiments from overshadowing large, moderate performers.
Quick example
Project A: Invested £10,000, Fees £200, Returned £12,000 → NetInvested £10,200 → Gain £1,800 → ROI ≈ 17.65%.
Project B: Invested £8,000, Fees £0, Returned £7,000 → NetInvested £8,000 → Gain −£1,000 → ROI −12.50%.
Weighted ROI = (1,800 − 1,000) ÷ (10,200 + 8,000) ≈ 4.33%.
Practical tips
- Define “Returned” upfront: revenue, gross profit, cost savings, or cash recovered—be consistent.
- Include all material costs: labor, tooling, licenses, vendor fees, and roll-outs.
- Use dates when possible: report ROI and CAGR for time-aware comparisons.
- Track active vs archived lines: keep experiments visible but exclude them from current rollups when needed.
Note: ROI is a simple snapshot. For projects with staged cash flows, milestone payments, or long tails, pair ROI with IRR/XIRR, payback period, and sensitivity analysis for better decisions.