Project ROI Calculator
Calculate Project ROI step by step: ROI = (benefits − ongoing costs − investment) ÷ investment.
In short
Formula: ROI = (benefits − ongoing costs − investment) ÷ investment. Payback = investment ÷ net annual benefit.
What this calculator does
Calculate Project ROI step by step: ROI = (benefits − ongoing costs − investment) ÷ investment. Worked example, questions and limitations included.
Use it to turn Currency (symbol only, never converted), Total project investment, Total expected benefits over the period, Ongoing costs over the same period, and the other shown inputs into a checked result you can compare, copy, or rerun with different assumptions.
The page shows the formula, a numeric worked example, and the assumptions that affect this pmo calculation.
Inputs and what they mean
- Currency (symbol only, never converted)
- — choice value.
- Total project investment
- — number value.
- Total expected benefits over the period
- — number value.
- Ongoing costs over the same period
- — number value.
- Benefit period
- — number value.
How to use it
- Enter each value in the unit shown next to the box (use the unit converter first if your numbers are in other units).
- Check the breakdown to see every intermediate step.
- Read the limitations before relying on the result.
Formula
Simple (undiscounted) ROI, the common business-case definition.
Benefits and costs must cover the same period.
Not discounted: use NPV for decisions spanning several years.
ROI = (benefits − ongoing costs − investment) ÷ investment. Payback = investment ÷ net annual benefit.
Inputs used: Currency (symbol only, never converted), Total project investment, Total expected benefits over the period, Ongoing costs over the same period, Benefit period.
Worked example
Process automation
- Net = 450,000 − 60,000 − 200,000 = 190,000.
- ROI = 95%; payback = 200,000 ÷ 130,000 = 1.54 years.
Reading the result
The headline figure is the main answer. Any breakdown underneath shows the parts that make it up, so you can check the working and see what changes when you adjust an input.
Limitations and assumptions
- Ignores the time value of money.
- Assumes even benefits for payback.
- Benefits estimates are often optimistic.
- Results are planning estimates built only from the figures you enter. They are not a guarantee of cost, schedule or delivery, and they do not replace your organisation's own project controls.
- The result depends on the values you enter for this project roi calculator; it does not supply missing rates, rules, prices, dates, or assumptions for you.
Common questions
Why not just use the general ROI calculator?
This version separates investment from ongoing costs and adds payback, which is how project business cases are usually written. Check the formula, example, and limitations on this page before using the result for a real pmo decision.
Should benefits be risk-adjusted?
Ideally yes. Multiply expected benefits by your confidence, or run best and worst cases.
How does this compare projects of different lengths?
Poorly. Use NPV or annualised returns when periods differ.
How do I use the Project ROI Calculator?
Enter the required values for Currency (symbol only, never converted), Total project investment, Total expected benefits over the period, Ongoing costs over the same period, Benefit period. The calculator applies the formula on this page and shows the main result with any supporting breakdown so you can check the arithmetic.
What formula does the Project ROI Calculator use?
ROI = (benefits − ongoing costs − investment) ÷ investment. Payback = investment ÷ net annual benefit. The visible formula section above lists the calculation path and the edge cases the page handles, so the result can be checked without relying on the form alone.
Can the Project ROI Calculator be used for exact decisions?
Use it as a calculation aid, not as a substitute for checking the underlying rule, contract, policy, or professional advice that applies to your situation. When a result depends on local rules, personal details, prices, or dates, enter those values yourself and confirm them before acting.
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