{"id":90455,"date":"2025-01-09T16:09:12","date_gmt":"2025-01-09T21:09:12","guid":{"rendered":"https:\/\/monday.com\/blog\/?p=90455"},"modified":"2026-07-19T05:38:58","modified_gmt":"2026-07-19T10:38:58","slug":"roi-formula-excel","status":"publish","type":"post","link":"https:\/\/monday.com\/blog\/task-management\/roi-formula-excel\/","title":{"rendered":"Howdo you use the ROI formula on Excel?to calculate ROI in Excel (with formulas and examples)"},"content":{"rendered":"<div class=\"text-block\" id=\"text-block-1\">\n<p><span data-changeset=\"true\" data-reason=\"Replaced a redundant title-style line with a real introduction paragraph so the article opens with expanded, useful context.\"><del>ROI Formula In Excel: How To Calculate Returns Accurately (2026)<\/del><ins>Every finance team has been there: a dozen spreadsheets open, formulas referencing the wrong cells, and a stakeholder asking for updated ROI numbers by end of day. Calculating return on investment is straightforward when you have the right formula \u2014 and Excel makes it easy to build a reusable setup for any project, campaign, or purchase.<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"#content\" target=\"_blank\">Skip to main content<\/a><a href=\"#footer\" target=\"_blank\">Skip to footer<\/a><\/del><\/span><\/p>\n<ul>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/\" target=\"_blank\">monday.com<\/a><\/del><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/\" target=\"_blank\">English<\/a><\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/es\/\" target=\"_blank\">Espa\u00f1ol<\/a><\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/pt\/\" target=\"_blank\">Portugu\u00eas<\/a><\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/fr\/\" target=\"_blank\">Fran\u00e7ais<\/a><\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/de\/\" target=\"_blank\">Deutsch<\/a><\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/ja\/\" target=\"_blank\">\u65e5\u672c\u8a9e<\/a><\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/ko\/\" target=\"_blank\">\ud55c\uad6d\uc5b4<\/a><\/del><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/auth.monday.com\/users\/sign_up_new\" target=\"_blank\">Get started<\/a><\/del><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"#submenu-mbmenu-1\" target=\"_blank\">Topics<\/a><\/del><\/span><\/p>\n<ul>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/project-management\/\" target=\"_blank\">Project management<\/a><\/del><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/crm-and-sales\/\" target=\"_blank\">CRM and sales<\/a><\/del><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/rnd\/\" target=\"_blank\">Product development life cycle<\/a><\/del><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/service\/\" target=\"_blank\">Service management<\/a><\/del><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/ai-agents\/\" target=\"_blank\">AI Agents<\/a><\/del><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/marketing\/\" target=\"_blank\">Marketing<\/a><\/del><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/construction\/\" target=\"_blank\">Construction management<\/a><\/del><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/monday-campaigns\/\" target=\"_blank\">monday campaigns<\/a><\/del><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/product\/\" target=\"_blank\">monday.com updates<\/a><\/del><\/span><\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/auth.monday.com\/users\/sign_up_new\" target=\"_blank\">Get started<\/a><\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/task-management\/\" target=\"_blank\">Task management<\/a><\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed author, date, share, or other page-level metadata from the article body to keep the refresh focused on the content itself.\"><del>[<\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed author, date, share, or other page-level metadata from the article body to keep the refresh focused on the content itself.\"><del>monday.com](https:\/\/monday.com\/blog\/author\/the-monday-com-team\/)<\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed author, date, share, or other page-level metadata from the article body to keep the refresh focused on the content itself.\"><del>\u2022Jan 9, 2025 \u20226 min read<\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed author, date, share, or other page-level metadata from the article body to keep the refresh focused on the content itself.\"><del><a href=\"https:\/\/auth.monday.com\/users\/sign_up_new\" target=\"_blank\">Get started<\/a><a href=\"https:\/\/monday.com\/ap\/mondayforenterprise?utm_campaign=contact-sales-button&amp;utm_source=blog\" target=\"_blank\">Contact sales<\/a><\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed author, date, share, or other page-level metadata from the article body to keep the refresh focused on the content itself.\"><del>Link Copied!<\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed the old table of contents links because the article was reorganized under a new outline and section order.\"><del><a href=\"#text-block-2\" target=\"_blank\">What is an ROI formula in Excel?<\/a><\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed the old table of contents links because the article was reorganized under a new outline and section order.\"><del><a href=\"#text-block-3\" target=\"_blank\">Why use an ROI formula in Excel?<\/a><\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed the old table of contents links because the article was reorganized under a new outline and section order.\"><del><a href=\"#text-block-4\" target=\"_blank\">What are some examples of ROI formulas in Excel?<\/a><\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed the old table of contents links because the article was reorganized under a new outline and section order.\"><del><a href=\"#text-block-5\" target=\"_blank\">monday.com\u2019s ROI formula template for Excel alternative<\/a><\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed the old table of contents links because the article was reorganized under a new outline and section order.\"><del><a href=\"#text-block-6\" target=\"_blank\">Related templates<\/a><\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed the broad business-finance setup so the introduction could focus faster on ROI in Excel, matching search intent.\"><del>Staying on top of your company\u2019s finances is absolutely critical. Regardless of industry or what sort of goods or services you\u2019re selling, you need to know how much money is going into and out of the business because that\u2019s going to tell you how worthwhile everything you\u2019re doing is.<\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Rewrote this sentence to clearly define ROI and Excel&apos;s role, replacing a vaguer setup line.\"><del>This is often called \u201cworking out your ROI\u201d (Return on Investment), and it can be done using a fairly simple calculation<\/del><ins>ROI \u2014 return on investment \u2014 is one of the most straightforward ways to measure whether a project, campaign, or purchase was worth the spend. And Excel remains the go-to for running those calculations because it\u2019s familiar, flexible, and already sitting on most company laptops<\/ins><\/span>. <span data-changeset=\"true\" data-reason=\"Replaced the old promotional overview with a more practical benefit statement about repeatable ROI calculations in Excel.\"><del>In this guide, we\u2019ll explain the importance of ROI, how to use it in Excel, and most importantly how to supercharge those calculations and avoid wasted manual time with monday.com\u2019s ROI formula template<\/del><ins>Knowing how to set up an ROI formula in Excel gives you a repeatable way to evaluate any investment in minutes<\/ins><\/span>.<\/p>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-2\">\n<h2 class=\"h2 text-block__title\">What is an ROI formula in Excel?<\/h2>\n<p><span data-changeset=\"true\" data-reason=\"Replaced the brief preface with a fuller article roadmap that previews formulas, examples, step-by-step instructions, limitations, and automation.\"><del>Before we talk ROI formulas, let\u2019s pump the brakes and cover what ROI is<\/del><ins>Below, you\u2019ll find the core ROI formula, 4 common variations with worked examples, a step-by-step guide to building your own ROI calculator spreadsheet, and a look at where Excel falls short for ongoing tracking. We\u2019ll also explore how a connected platform can automate the tracking process so your numbers stay accurate without the manual upkeep<\/ins><\/span>.<\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added a CTA button in the new position called for by the refreshed outline.\"><ins><a class=\"cta-button blue-button\" aria-label=\"\" href=\"https:\/\/auth.monday.com\/users\/sign_up_new\" target=\"_blank\"><\/a><\/ins><\/span><\/p>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-3\">\n<h2 class=\"h2 text-block__title\">Key takeaways:<\/h2>\n<p><span data-changeset=\"true\" data-reason=\"Added an overview paragraph to introduce the new key takeaways section and improve scannability.\"><ins>Here\u2019s a snapshot of what this article covers \u2014 from the core formula to advanced variations and where Excel reaches its limits. Whether you\u2019re new to ROI calculations or refining your spreadsheet setup, these points give you the essentials at a glance.<\/ins><\/span><\/p>\n<ul>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a takeaway highlighting the core ROI formula because the brief called for key takeaways.\"><ins><strong>The basic ROI formula is (Net Profit \/ Cost of Investment) x 100<\/strong> \u2014 it gives you a percentage that shows how much return you earned relative to what you spent.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a takeaway summarizing the 5-step Excel calculator walkthrough that was missing from the old version.\"><ins><strong>You can build a functional ROI calculator in Excel in 5 steps<\/strong> \u2014 from labeling columns to adding conditional formatting that color-codes profitable and unprofitable investments.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a takeaway summarizing the 4 ROI formula variations to preview the expanded examples section.\"><ins><strong>4 ROI formula variations cover different scenarios:<\/strong> net income ROI, capital gain ROI, total return ROI, and annualized ROI each answer a slightly different financial question.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a takeaway about ROI limitations because the brief specifically required a limitations section.\"><ins><strong>ROI has real limitations:<\/strong> it doesn\u2019t account for the time value of money, ignores risk, and provides a static snapshot that can become outdated fast.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a takeaway explaining the connected-platform alternative to support the expanded product section.\"><ins><strong>A connected platform replaces manual Excel ROI tracking<\/strong> with formula columns that auto-calculate, dashboards that display live metrics, and automations that update figures whenever project data changes.<\/ins><\/span><\/p>\n<\/li>\n<\/ul>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-4\">\n<h2 class=\"h2 text-block__title\">What is return on investment (ROI)?<\/h2>\n<p><span data-changeset=\"true\" data-reason=\"Added a clear explanation of what ROI measures so readers can understand the metric before getting into formulas.\"><ins>So how do you know whether a project was worth the spend? That\u2019s exactly what ROI answers. Return on investment is a performance metric that measures how much profit \u2014 or loss \u2014 an investment generates relative to its cost. It\u2019s expressed as a percentage, making it straightforward to compare across different projects, campaigns, or assets.<\/ins><\/span><\/p>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-5\">\n<\/div>\n<div class=\"text-block\" id=\"text-block-6\">\n<p><span data-changeset=\"true\" data-reason=\"Added context on why ROI matters, plus refreshed internal links, to make the definition section more useful and align with the link refresh.\"><ins>ROI matters because it simplifies complex financial decisions into a single, comparable number. Whether you\u2019re evaluating a <a href=\"https:\/\/monday.com\/blog\/marketing\/marketing-roi\/\" target=\"_blank\">marketing campaign\u2019s return<\/a>, a new piece of equipment, or a software subscription, ROI tells you if the dollars you put in generated more dollars coming out. Teams use it to prioritize investments, justify budgets, and <a href=\"https:\/\/monday.com\/blog\/project-management\/communications-plan-template\/\" target=\"_blank\">communicate results<\/a> to stakeholders who need fast answers, not lengthy financial reports.<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added the basic formula with a simple numeric example to strengthen the expanded ROI definition section.\"><ins>The basic formula looks like this: ROI = (Net Profit \/ Cost of Investment) x 100. If you invested $10,000 and earned $12,500 back, your net profit is $2,500 and your ROI is 25%. Simple enough \u2014 but there\u2019s a catch. Standard ROI doesn\u2019t account for the time value of money, meaning a 25% return over 1 year looks identical to a 25% return over 5 years. We\u2019ll cover that limitation \u2014 and how to handle it \u2014 later in this article.<\/ins><\/span><\/p>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-7\">\n<h2 class=\"h2 text-block__title\">The basic ROI formula and how it works<\/h2>\n<p><span data-changeset=\"true\" data-reason=\"Introduced the simple ROI equation in its own section to support the new educational structure.\"><ins>What is the simple equation for ROI? At its core, the ROI formula has two variables and one operation:<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added bolded formula text so the main equation is easy to scan within the new section.\"><ins><strong>ROI = (Net Profit \/ Cost of Investment) x 100<\/strong><\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Replaced a generic definition with a clearer explanation of what net profit and cost of investment mean.\"><del>Return on investment (ROI) is a key business performance metric that companies and individuals use to calculate how efficient or profitable their investment is<\/del><ins>Here\u2019s what each part means. Net profit is the difference between what you earned and what you spent. Cost of investment is the total amount you originally put in<\/ins><\/span>. <span data-changeset=\"true\" data-reason=\"Added an explanation of why the formula is multiplied by 100 so readers understand how the percentage is derived.\"><del>It can also be used to compare different types of investments to figure out your net profit for each investment option<\/del><ins>Multiplying by 100 converts the decimal into a percentage so you can compare it across investments without reaching for a calculator<\/ins><\/span>.<\/p>\n<p><span data-changeset=\"true\" data-reason=\"Replaced the standalone template link with a worked example here because the brief keeps the download link in the step-by-step section.\"><del><a href=\"https:\/\/monday.com\/blog\/wp-content\/uploads\/2022\/07\/ROI_Financial_Statement.xlsx\" target=\"_blank\">Download Excel template<\/a><\/del><ins>Let\u2019s walk through a quick example. Suppose your team spends $10,000 on a paid advertising campaign. At the end of the quarter, that campaign generated $12,500 in revenue directly attributed to those ads. Here\u2019s the math:<\/ins><\/span><\/p>\n<ul>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a bullet showing how to calculate net profit so the example is easier to follow.\"><ins><strong>Net Profit:<\/strong> $12,500 &#8211; $10,000 = $2,500<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a bullet showing the ROI math result so the example is explicit and scannable.\"><ins><strong>ROI:<\/strong> ($2,500 \/ $10,000) x 100 = 25%<\/ins><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span data-changeset=\"true\" data-reason=\"Added interpretation guidance so readers know what positive and negative ROI mean and when annualized ROI is more useful.\"><ins>A positive ROI \u2014 anything above 0% \u2014 means the investment returned more than it cost. A negative ROI means you lost money. The higher the percentage, the more profitable the investment relative to its cost. Keep in mind that this basic formula gives you a total return figure regardless of how long the investment took to pay off. For time-adjusted comparisons, you\u2019ll want the annualized ROI variation covered below.<\/ins><\/span><\/p>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-8\">\n<h2 class=\"h2 text-block__title\">4 common ROI formula variations in Excel<\/h2>\n<p><span data-changeset=\"true\" data-reason=\"Added an introduction to explain why multiple ROI formulas are needed for different scenarios.\"><ins>The basic ROI formula works for quick, one-off calculations. But different financial scenarios call for different approaches. Each of the 4 variations below answers a slightly different question, and each one translates neatly into an Excel formula with specific cell references. Which one is right for your situation? That depends on what you\u2019re measuring and how precise you need to be.<\/ins><\/span><\/p>\n<h3>Net income ROI<\/h3>\n<p><span data-changeset=\"true\" data-reason=\"Reframed this subsection around net income ROI instead of the older general wording so it fits the new outline.\"><del>You can also compare your ROI over multiple time periods to calculate the growth rate at which your returns may have changed. To calculate your team\u2019s ROI, you\u2019d use a basic ROI<\/del><ins>This is the most common version and the closest to the basic<\/ins><\/span> formula. <span data-changeset=\"true\" data-reason=\"Clarified that this variation uses net income after expenses, making the formula explanation more precise.\"><del>That calculation is just the return \u2014 or net income \u2014 your investment has generated divided<\/del><ins>Net income ROI divides your net income (revenue minus all expenses)<\/ins><\/span> by the cost of <span data-changeset=\"true\" data-reason=\"Removed a redundant filler word to tighten the formula sentence.\"><del>that\u00a0<\/del><\/span>investment.<span data-changeset=\"true\" data-reason=\"Removed an extra closing sentence because the new formula and example already explain the profitability takeaway.\"><del>\u00a0The resulting ratio or percentage will tell you how profitable that investment, project, or product really is.<\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added the net income ROI formula in a bold, easy-to-scan format.\"><ins><strong>Formula:<\/strong> ROI = Net Income \/ Cost of Investment<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added an Excel cell-reference example so readers can apply the net income ROI formula directly.\"><ins>In Excel, if your net income sits in cell B2 and your cost of investment is in B3, the formula is simply <strong>=B2\/B3<\/strong>. Format the result as a percentage. For example, if a product launch generated $45,000 in net income on a $30,000 investment, your ROI is 150% \u2014 meaning you earned $1.50 for every $1 spent.<\/ins><\/span><\/p>\n<h3>Capital gain ROI<\/h3>\n<p><span data-changeset=\"true\" data-reason=\"Added a plain-language explanation of capital gain ROI so the variation is clearly distinguished from the basic formula.\"><ins>Capital gain ROI measures the profit from selling an asset relative to what you originally paid for it. It\u2019s most common in stock portfolios and real estate.<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added the capital gain formula in a bold format for quick reference.\"><ins><strong>Formula:<\/strong> ROI = (Sale Price &#8211; Purchase Price) \/ Purchase Price<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added an Excel example with sample numbers to make the capital gain formula actionable.\"><ins>In Excel: <strong>=(B2-B3)\/B3<\/strong> where B2 is the sale price and B3 is the purchase price. If you purchased a property for $200,000 and sold it for $260,000, your capital gain ROI is 30%.<\/ins><\/span><\/p>\n<h3>Total return ROI<\/h3>\n<p><span data-changeset=\"true\" data-reason=\"Added an explanation of total return ROI so readers understand that extra income is included.\"><ins>Total return is similar to capital gain but includes additional income generated by the investment \u2014 dividends, interest payments, or rental income on top of the price change.<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added the total return formula in a bold format for clarity.\"><ins><strong>Formula:<\/strong> ROI = (Ending Value &#8211; Starting Value) \/ Cost of Investment<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added an Excel example showing how total return ROI is calculated with cell references.\"><ins>In Excel: <strong>=(B2-B3)\/B4<\/strong> where B2 is your ending value (including all income received), B3 is your starting value, and B4 is your original cost. Total return gives a fuller picture because it captures every dollar the investment produced, not just the sale price.<\/ins><\/span><\/p>\n<h3>Annualized ROI<\/h3>\n<p><span data-changeset=\"true\" data-reason=\"Added context on why standard ROI can mislead when time periods differ, setting up the need for annualized ROI.\"><ins>Here\u2019s where things get more interesting. Standard ROI ignores time, which makes it unreliable for comparing investments held over different periods. A 60% return over 2 years sounds impressive \u2014 but is it more impressive than a 40% return over 1 year? Annualized ROI answers that question by normalizing returns to a per-year basis.<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added the annualized ROI formula in a bold format for quick reference.\"><ins><strong>Formula:<\/strong> Annualized ROI = (Ending Value \/ Starting Value) ^ (1 \/ Number of Years) &#8211; 1<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added the Excel version and a comparison example so readers can use annualized ROI correctly.\"><ins>In Excel: <strong>=(B2\/B3)^(1\/B4)-1<\/strong> where B2 is your ending value, B3 is your starting value, and B4 is the number of years. Alternatively, you can use Excel\u2019s built-in RATE function for more complex scenarios involving periodic payments. For the example above: a $10,000 investment that grows to $16,000 over 2 years has a total ROI of 60%, but an annualized ROI of about 26.5%. Compare that to a $10,000 investment returning $14,000 in 1 year \u2014 a 40% annualized ROI that significantly outperforms the two-year option on a per-year basis.<\/ins><\/span><\/p>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-9\">\n<h2 class=\"h2 text-block__title\">How to build an ROI calculator in Excel (5 steps)<\/h2>\n<p><span data-changeset=\"true\" data-reason=\"Added a practical introduction to the calculator walkthrough and kept the download template link in the step-by-step section per the link refresh.\"><ins>Ready to move from theory to practice? Building a reusable ROI calculator in Excel takes about 10 minutes and saves hours of ad-hoc calculations down the road. Follow these 5 steps to create a spreadsheet you can use for any investment \u2014 marketing campaigns, capital expenditures, software purchases, or project evaluations. You can also <a href=\"https:\/\/monday.com\/blog\/wp-content\/uploads\/2022\/07\/ROI_Financial_Statement.xlsx\" target=\"_blank\">download our free Excel template<\/a> to get a head start.<\/ins><\/span><\/p>\n<h3>Step 1: set up your spreadsheet columns<\/h3>\n<p><span data-changeset=\"true\" data-reason=\"Added instructions for setting up spreadsheet columns so readers can build the calculator from scratch.\"><ins>Open a new Excel workbook and create 4 column headers in row 1: <strong>Investment Name<\/strong> (column A), <strong>Cost of Investment<\/strong> (column B), <strong>Net Return<\/strong> (column C), and <strong>ROI<\/strong> (column D). Select the entire range and format it as an Excel Table (Ctrl+T) \u2014 this makes it easier to add new rows later without breaking your formulas.<\/ins><\/span><\/p>\n<h3>Step 2: enter your investment data<\/h3>\n<p><span data-changeset=\"true\" data-reason=\"Added guidance on entering and formatting investment data so the spreadsheet setup is consistent.\"><ins>Starting in row 2, enter each investment on its own row. Type the name in column A, the total cost in column B, and the net return (total revenue or ending value) in column C. Use consistent currency formatting across both financial columns: select columns B and C, right-click, choose \u201cFormat Cells,\u201d and select Currency with 2 decimal places.<\/ins><\/span><\/p>\n<h3>Step 3: write the ROI formula<\/h3>\n<p><span data-changeset=\"true\" data-reason=\"Added the exact Excel formula for ROI so readers can implement the calculator directly.\"><ins>Click into cell D2 and type the formula: <strong>=(C2-B2)\/B2<\/strong>. This subtracts your cost from your return, then divides by the cost to give you ROI as a decimal. Select Enter. If you formatted your data as a Table in Step 1, Excel will automatically fill the formula down for every row you add.<\/ins><\/span><\/p>\n<h3>Step 4: format the result as a percentage<\/h3>\n<p><span data-changeset=\"true\" data-reason=\"Added instructions for formatting ROI results as percentages so the outputs are easier to interpret.\"><ins>Select column D, right-click, and choose \u201cFormat Cells.\u201d Under the Number tab, select Percentage and set decimal places to 1 or 2 \u2014 whatever precision your stakeholders prefer. Your ROI values will now display as readable percentages instead of raw decimals.<\/ins><\/span><\/p>\n<h3>Step 5: add conditional formatting for quick analysis<\/h3>\n<p><span data-changeset=\"true\" data-reason=\"Added conditional-formatting guidance so profitable and unprofitable investments are easier to scan.\"><ins>Highlight the ROI column, go to Home &gt; Conditional Formatting, and create two rules. First: format cells greater than 0 with a green fill and dark green text. Second: format cells less than 0 with a red fill and dark red text. Now every positive ROI glows green and every loss stands out in red \u2014 making it easy to scan dozens of investments at a glance. You can also add Data Bars or Icon Sets for a more visual comparison across rows.<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added a CTA button in the new position called for by the refreshed outline.\"><ins><a class=\"cta-button blue-button\" aria-label=\"\" href=\"https:\/\/auth.monday.com\/users\/sign_up_new\" target=\"_blank\"><\/a><\/ins><\/span><\/p>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-10\">\n<h2 class=\"h2 text-block__title\">What ROI does and doesn\u2019t measure<\/h2>\n<p><span data-changeset=\"true\" data-reason=\"Rewrote the opening of this section to frame both what ROI measures and what it misses, instead of only mentioning one limitation.\"><del>It\u2019s important to note that ROI doesn\u2019t generally consider<\/del><ins>ROI is powerful precisely because it\u2019s simple. But that simplicity comes with trade-offs. Understanding where the formula needs support helps you make more accurate decisions \u2014 and know when to bring in additional metrics. Does ROI account for the<\/ins><\/span> time value of money<span data-changeset=\"true\" data-reason=\"Replaced the longer TVM definition with a shorter transition because the section now covers several limitations, not just one.\"><del>\u00a0(TVM), which is the popular accounting theory that an amount of money you get today will be worth more than receiving the exact same amount at some point in the future<\/del><ins>? No, and that\u2019s just one of several gaps worth knowing about<\/ins><\/span>.<span data-changeset=\"true\" data-reason=\"Removed the old standalone sentence because the rewritten section explains the limitation more clearly in the new structure.\"><del>\u00a0ROI treats every dollar the same \u2014 no matter when your business has earned it.<\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added an introductory line to set up the list of ROI limitations.\"><ins>Here are the key limitations to consider before relying on ROI as your only measure:<\/ins><\/span><\/p>\n<ul>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a limitation about the time value of money because the brief required this gap to be covered.\"><ins><strong>Does not account for the time value of money:<\/strong> A 50% return over 1 year is far more valuable than a 50% return over 10 years. The basic ROI formula treats both identically. For time-adjusted analysis, use annualized ROI or net present value (NPV).<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a limitation about risk so readers do not treat identical ROI figures as equally safe.\"><ins><strong>Ignores risk:<\/strong> Two investments can show identical ROI numbers while carrying vastly different risk profiles. A government bond and a startup investment might both return 15%, but the probability of achieving that return differs dramatically.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a limitation about cost allocation to show how ROI can be distorted by inconsistent inputs.\"><ins><strong>Can be manipulated by cost allocation:<\/strong> Different teams may define \u201ccost of investment\u201d differently. Include only direct costs, and your ROI looks stellar. Include overhead, labor, and opportunity costs, and the picture changes.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a limitation about inconsistent definitions across teams to make cross-functional use more realistic.\"><ins><strong>No standardized definition across organizations:<\/strong> Marketing teams, finance teams, and operations teams often calculate ROI using slightly different inputs \u2014 which makes cross-departmental comparisons unreliable without agreed-upon definitions.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a limitation about ROI being a static snapshot, which supports the brief&apos;s move toward live tracking.\"><ins><strong>Provides a static snapshot:<\/strong> A single ROI calculation captures one moment in time. It won\u2019t tell you if returns are trending up or down, or if a project that looked profitable last quarter is now underperforming.<\/ins><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span data-changeset=\"true\" data-reason=\"Added a transition to the product section by showing why teams may outgrow static spreadsheets.\"><ins>What if your ROI calculations could update automatically as new data comes in? That\u2019s exactly the shift from static spreadsheets to live, connected platforms \u2014 and we\u2019ll cover how that works shortly.<\/ins><\/span><\/p>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-11\">\n<h2 class=\"h2 text-block__title\">What is a good ROI percentage?<\/h2>\n<p><span data-changeset=\"true\" data-reason=\"Replaced generic Excel-calculator advice with a context-based explanation of what makes ROI good, which better matches the new section goal.\"><del>In Microsoft Office, you can use a built-in Excel calculator to figure out your ROI. All you have to do is complete a spreadsheet with the numbers you\u2019d like to compare<\/del><ins>\u201cGood\u201d ROI isn\u2019t a fixed number \u2014 it depends entirely on context<\/ins><\/span>. The <span data-changeset=\"true\" data-reason=\"Added the main factors that shape a good ROI so the answer is more nuanced and useful.\"><del>formula to calculate your true ROI is pretty simple. You just divide your returns in one cell by your cost in another cell<\/del><ins>industry you\u2019re in, the risk you\u2019re taking, the time horizon of the investment, and the opportunity cost of putting that money elsewhere all shape what counts as a worthwhile return<\/ins><\/span>.<span data-changeset=\"true\" data-reason=\"Added a concrete example to show why a good ROI benchmark depends on the investment type.\"><ins>\u00a0A 10% annual return might be outstanding for a low-risk bond portfolio but underwhelming for a high-growth marketing campaign.<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added benchmark intro text so the new ROI guidance can be scanned quickly.\"><ins>Here are some general benchmarks to use as reference points:<\/ins><\/span><\/p>\n<ul>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a stock-market benchmark to make the good-ROI section more practical.\"><ins><strong>Stock market:<\/strong> ~7-10% annually after inflation is the long-term historical average for diversified portfolios.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a real-estate benchmark to broaden the comparison examples.\"><ins><strong>Real estate:<\/strong> 8-12% annual return is generally considered strong, though it varies by market and property type.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a marketing benchmark to align the article with common business ROI use cases.\"><ins><strong>Marketing campaigns:<\/strong> A 5:1 return ratio (500% ROI) is a common benchmark, meaning $5 earned for every $1 spent.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a business-project benchmark tied to cost of capital for a more decision-oriented definition of good ROI.\"><ins><strong>Business projects:<\/strong> Any positive ROI may be worthwhile if it exceeds the company\u2019s cost of capital \u2014 the minimum return needed to justify the investment.<\/ins><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span data-changeset=\"true\" data-reason=\"Removed an external image source citation and replaced it with practical guidance on calculating a target ROI, matching the link refresh.\"><del>( <a href=\"https:\/\/blog.hubspot.com\/marketing\/how-to-prove-the-roi-of-your-marketing-slideshare\" target=\"_blank\">Image Source<\/a> )<\/del><ins>How do you calculate a 10% ROI? Rearrange the formula: if you need a 10% return on a $50,000 investment, you need $5,000 in net profit. The required return equals (Target ROI% \/ 100) x Cost of Investment. This works for setting performance targets \u2014 you can calculate exactly how much revenue a campaign or project needs to generate to hit your threshold.<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added advice on annualizing returns so readers can compare investments with different time horizons.\"><ins>When comparing ROI across investments with different holding periods, always annualize the returns first. A 30% total return over 3 years is roughly 9.1% annualized \u2014 which you can then compare directly against a 12% annual return on a 1-year investment.<\/ins><\/span><\/p>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-12\">\n<h2 class=\"h2 text-block__title\">Why use an ROI formula in Excel?Make your Excel ROI calculator dynamic<\/h2>\n<p><span data-changeset=\"true\" data-reason=\"Added an introduction explaining how to make an ROI spreadsheet more interactive instead of leaving the section generic.\"><ins>A basic ROI spreadsheet gets the job done for one-off calculations, but it becomes more powerful when you add interactive features. These enhancements turn a static table into a flexible analysis dashboard \u2014 all within Excel.<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added an overview line to introduce the new list of dynamic Excel features.\"><ins>Here are 4 features that add real analytical depth:<\/ins><\/span><\/p>\n<ul>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added an IF-formula example so readers can label investments against a target ROI automatically.\"><ins><strong>IF formulas for instant labels:<\/strong> Add a column with <strong>=IF(D2&gt;=0.1,&#8221;Meets Target&#8221;,&#8221;Below Target&#8221;)<\/strong> to instantly flag which investments hit your ROI threshold. Change the 0.1 to whatever target percentage your team has set.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added dropdown guidance so readers can categorize and filter ROI data inside Excel.\"><ins><strong>Dropdown menus for categorization:<\/strong> Use Data Validation to create a dropdown in a \u201cCategory\u201d column (marketing, operations, capital expenditure). This lets you filter and compare ROI by investment type without building separate spreadsheets.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added SUM and AVERAGE examples to support portfolio-level ROI analysis.\"><ins><strong>SUM and AVERAGE for portfolio-level metrics:<\/strong> Add summary rows using <strong>=AVERAGE(D2:D20)<\/strong> for your portfolio\u2019s average ROI and <strong>=SUM(C2:C20)-SUM(B2:B20)<\/strong> for total net profit across all investments.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added chart guidance so readers can visualize ROI comparisons more effectively.\"><ins><strong>Charts for visual comparison:<\/strong> Select your Investment Name and ROI columns, insert a bar chart, and you\u2019ve got a visual ranking of your strongest and weakest investments. Add a reference line at your target ROI to see which investments clear the bar.<\/ins><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span data-changeset=\"true\" data-reason=\"Added a transition explaining that even dynamic Excel sheets still require manual upkeep, which prepares readers for the platform section.\"><ins>These Excel enhancements help \u2014 but they still require manual updates every time your data changes. Every new expense entry, revenue adjustment, or project milestone means opening the spreadsheet, updating cells, and re-checking formulas. For teams tracking ROI across more than a handful of projects, that manual loop becomes the bottleneck.<\/ins><\/span><\/p>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-13\">\n<h2 class=\"h2 text-block__title\">How monday AI Work Platform replaces manual ROI tracking<\/h2>\n<p><span data-changeset=\"true\" data-reason=\"Added a fuller explanation of Excel&apos;s limits in multi-project ROI tracking to support the expanded product section.\"><ins>Excel works for one-time ROI calculations. Tracking return on investment across multiple projects, departments, or quarters reveals the limits of a static spreadsheet. Version control issues, broken formulas, and the constant need to re-enter data are the real costs of manual tracking. Anyone doing <a href=\"https:\/\/monday.com\/blog\/project-management\/project-cost-tracking\/\" target=\"_blank\">project cost tracking<\/a> manually knows these friction points don\u2019t show up in any ROI formula.<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added a transition showing how the platform addresses the spreadsheet problems described above.\"><ins>monday AI Work Platform eliminates those friction points by connecting your financial data to live, auto-updating calculations. Here\u2019s how the platform replaces each piece of the Excel workflow:<\/ins><\/span><\/p>\n<ul>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Replaced a placeholder line with a real product capability that highlights formula columns and dashboards, as requested in the link refresh.\"><del>\u00a0<\/del><ins><strong>Formula columns and<\/strong> <a href=\"https:\/\/monday.com\/features\/dashboards\" target=\"_blank\"><strong>dashboards<\/strong><\/a><strong>:<\/strong> Replace manual Excel formulas with <a href=\"https:\/\/support.monday.com\/hc\/en-us\/articles\/360003340799-The-Formula-Column\" target=\"_blank\">formula columns<\/a> that auto-calculate ROI, net profit, and return ratios across every row. Portfolio-level dashboards display live metrics for stakeholders \u2014 no one needs to request an updated spreadsheet.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added Automations to show how ROI updates can happen automatically in the product section.\"><ins><a href=\"https:\/\/monday.com\/features\/automations\" target=\"_blank\"><strong>Automations<\/strong><\/a><strong>:<\/strong> When project costs or revenue figures change, ROI recalculates instantly. Set up automations to notify your team when an investment drops below a target threshold or when a project hits a milestone that impacts its return.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added monday vibe as a custom app-building option to deepen the product section beyond a template mention.\"><ins><strong>monday vibe:<\/strong> Need a custom ROI calculator app? Describe what you want in plain language and monday vibe builds it for you \u2014 no coding, no complex spreadsheet macros. You get a tailored financial tracking interface in minutes.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added monday agents to show AI-assisted reporting and monitoring in the refreshed product section.\"><ins><strong>monday agents:<\/strong> AI agents generate financial reports on schedule, surface at-risk investments so teams can act early, and track metrics progress against goals automatically. Instead of pulling numbers into a quarterly deck, the data is already waiting for you.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added Excel import and integration details so the product section feels practical and connected to existing workflows.\"><ins><strong>Excel import and integrations:<\/strong> Already have years of ROI data in spreadsheets? Import existing Excel files directly into the platform. Integrations with Salesforce, HubSpot, and other revenue sources mean your data flows in automatically \u2014 no copy-paste required.<\/ins><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span data-changeset=\"true\" data-reason=\"Expanded the proof section with ROI, savings, the Forrester TEI study, and relevant internal links to strengthen the product story without relying on thin promotion.\"><ins>The results speak for themselves. Customers report an average 8x ROI from using the platform, with $250,000 saved annually to reinvest elsewhere. An independent <a href=\"https:\/\/monday.com\/p\/forrester-tei\/\" target=\"_blank\">Forrester Total Economic Impact study<\/a> found a payback period of less than 4 months. Whether you\u2019re tracking campaign performance with an <a href=\"https:\/\/monday.com\/templates\/expense-tracking\" target=\"_blank\">expense tracking template<\/a> or monitoring departmental budgets with a <a href=\"https:\/\/monday.com\/templates\/budget-tracker\" target=\"_blank\">budget tracker template<\/a>, the platform keeps every number current without the manual overhead.<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added a CTA button in the new position called for by the refreshed outline.\"><ins><a class=\"cta-button blue-button\" aria-label=\"\" href=\"https:\/\/auth.monday.com\/users\/sign_up_new\" target=\"_blank\"><\/a><\/ins><\/span><\/p>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-14\">\n<h2 class=\"h2 text-block__title\">Track every dollar and measure what matters<\/h2>\n<p>ROI is one of the most <span data-changeset=\"true\" data-reason=\"Replaced the older general conclusion with a stronger wrap-up that summarizes formulas, variations, and Excel steps from the refreshed article.\"><del>fundamental business metrics out there. Why? Because it\u2019s simple and super straightforward. You don\u2019t have to be a professional financial analyst to work out your team\u2019s ROI on a project, and it\u2019s a decent gauge of an investment\u2019s profitability that you can <a href=\"https:\/\/monday.com\/blog\/project-management\/communications-plan-template\/\" target=\"_blank\">easily communicate<\/a> to other stakeholders. More importantly, ROI can tell you a net gain or loss.<\/del><ins>essential metrics in business \u2014 and now you have the formulas, variations, and step-by-step instructions to calculate it confidently in Excel. From basic net profit calculations to annualized returns and dynamic spreadsheet features, you\u2019re equipped to evaluate any investment and present the numbers that drive decisions.<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed a repetitive paragraph because the new conclusion already explains how to interpret positive and negative ROI.\"><del>If your ROI is positive, it means your investment was probably worthwhile. If your ROI is negative, it means there\u2019s likely some room for improvement. From there, your team can brainstorm what efficiencies could be made or where costs could be shaved.<\/del><\/span><\/p>\n<p>That<span data-changeset=\"true\" data-reason=\"Replaced the old generic Excel endorsement with a conclusion that explains when teams outgrow spreadsheets and why the platform helps.\"><del>\u2019s why it makes sense to use an ROI formula in Excel. Excel\u2019s calculator doesn\u2019t lie, and the formulas you enter automatically turn your data into ratios or percentages that will better inform your business choices<\/del><ins>\u00a0said, Excel has a ceiling. When your team is tracking ROI across dozens of projects, campaigns, and departments, a connected platform keeps everything accurate and accessible in real time. monday AI Work Platform brings your ROI formula, financial data, and stakeholder reporting into one workspace \u2014 with live dashboards, automated recalculations, and AI-powered insights that replace the manual spreadsheet cycle entirely<\/ins><\/span>.<\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added a CTA button in the new position called for by the refreshed outline.\"><ins><a class=\"cta-button blue-button\" aria-label=\"\" href=\"https:\/\/auth.monday.com\/users\/sign_up_new\" target=\"_blank\"><\/a><\/ins><\/span><\/p>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-15\">\n<div class=\"accordion faq\" id=\"faq-faqs\">\n  <h2 class=\"accordion__heading section-title text-left\">FAQs<\/h2>\n    <div class=\"accordion__item\">\n    <a class=\"accordion__button d-block\" data-toggle=\"collapse\" data-parent=\"#faq-faqs\" href=\"#q-faqs-1\" aria-expanded=\"false\">\n      <h3 class=\"accordion__question\">What is the formula for calculating ROI?        \n          \n        \n      <\/h3>\n    <\/a>\n    <div id=\"q-faqs-1\" class=\"accordion__answer collapse collapse--md\" data-parent=\"#faq-faqs\">\n      <p><span data-changeset=\"true\" data-reason=\"Added a direct FAQ answer with the standard ROI formula for quick-reference readers.\"><del>A potential issue with calculating ROI is that it doesn\u2019t totally eradicate all risk or uncertainty. But to make sure you\u2019re getting all your calculations spot-on, you\u2019re going to want to remove as much human error as possible<\/del><ins>The formula for calculating ROI is (Net Profit \/ Cost of Investment) x 100. This gives you a percentage that shows how much return you earned relative to what you spent<\/ins><\/span>.<\/p>\n    <\/div>\n  <\/div>\n    <div class=\"accordion__item\">\n    <a class=\"accordion__button d-block\" data-toggle=\"collapse\" data-parent=\"#faq-faqs\" href=\"#q-faqs-2\" aria-expanded=\"false\">\n      <h3 class=\"accordion__question\">What is a good ROI percentage?        \n          \n        \n      <\/h3>\n    <\/a>\n    <div id=\"q-faqs-2\" class=\"accordion__answer collapse collapse--md\" data-parent=\"#faq-faqs\">\n      <p><span data-changeset=\"true\" data-reason=\"Added a concise benchmark-based FAQ answer for readers seeking a quick definition of good ROI.\"><ins>A good ROI percentage depends on the investment type and industry. For stock market investments, 7-10% annually is a common benchmark, while marketing campaigns often target a 5:1 return ratio (500% ROI).<\/ins><\/span><\/p>\n    <\/div>\n  <\/div>\n    <div class=\"accordion__item\">\n    <a class=\"accordion__button d-block\" data-toggle=\"collapse\" data-parent=\"#faq-faqs\" href=\"#q-faqs-3\" aria-expanded=\"false\">\n      <h3 class=\"accordion__question\">How do you calculate a 10% ROI?        \n          \n        \n      <\/h3>\n    <\/a>\n    <div id=\"q-faqs-3\" class=\"accordion__answer collapse collapse--md\" data-parent=\"#faq-faqs\">\n      <p><span data-changeset=\"true\" data-reason=\"Added a direct 10 percent ROI example so readers can translate the formula into a target return.\"><ins>To calculate a 10% ROI, you need a net profit that equals 10% of your total investment cost. For a $50,000 investment, that means earning $5,000 in net profit \u2014 so your total return would need to reach $55,000.<\/ins><\/span><\/p>\n    <\/div>\n  <\/div>\n    <div class=\"accordion__item\">\n    <a class=\"accordion__button d-block\" data-toggle=\"collapse\" data-parent=\"#faq-faqs\" href=\"#q-faqs-4\" aria-expanded=\"false\">\n      <h3 class=\"accordion__question\">What is the difference between ROI and annualized ROI?        \n          \n        \n      <\/h3>\n    <\/a>\n    <div id=\"q-faqs-4\" class=\"accordion__answer collapse collapse--md\" data-parent=\"#faq-faqs\">\n      <p><span data-changeset=\"true\" data-reason=\"Added a concise explanation of the difference between ROI and annualized ROI for quick scanning.\"><ins>Standard ROI measures total return regardless of time period, while annualized ROI adjusts the return to reflect a per-year rate. Annualized ROI is more useful when comparing investments held for different durations because it normalizes the time factor.<\/ins><\/span><\/p>\n    <\/div>\n  <\/div>\n    <div class=\"accordion__item\">\n    <a class=\"accordion__button d-block\" data-toggle=\"collapse\" data-parent=\"#faq-faqs\" href=\"#q-faqs-5\" aria-expanded=\"false\">\n      <h3 class=\"accordion__question\">Does ROI account for the time value of money?        \n          \n        \n      <\/h3>\n    <\/a>\n    <div id=\"q-faqs-5\" class=\"accordion__answer collapse collapse--md\" data-parent=\"#faq-faqs\">\n      <p><span data-changeset=\"true\" data-reason=\"Replaced a broad calculator explanation with a direct FAQ answer clarifying that basic ROI does not account for the time value of money.\"><del>Calculating ROI in Excel is simple. Deciding which ROI calculator to use is a little bit more difficult. Excel\u2019s ROI formula calculator is essentially a system of formulas you can use to figure out a range of ROI calculations \u2014 from return on equity (ROE) and internal rate of return (IRR), to annualized ROI and return on assets<\/del><ins>No, the basic ROI formula does not account for the time value of money. It treats every dollar the same regardless of when it was earned. For time-adjusted returns, use annualized ROI or net present value (NPV) instead<\/ins><\/span>.<\/p>\n    <\/div>\n  <\/div>\n    <div class=\"accordion__item\">\n    <a class=\"accordion__button d-block\" data-toggle=\"collapse\" data-parent=\"#faq-faqs\" href=\"#q-faqs-6\" aria-expanded=\"false\">\n      <h3 class=\"accordion__question\">Expense Tracking TemplateWhat Excel functions are used for ROI calculations?        \n          \n        \n      <\/h3>\n    <\/a>\n    <div id=\"q-faqs-6\" class=\"accordion__answer collapse collapse--md\" data-parent=\"#faq-faqs\">\n      <p><span data-changeset=\"true\" data-reason=\"Replaced template promotion copy with a practical FAQ answer about Excel functions used for ROI.\"><del>Want to get more proactive about your finances? Check out our <a href=\"https:\/\/monday.com\/templates\/expense-tracking\" target=\"_blank\">Expense Tracking Template<\/a> . This dynamic template offers teams a flexible bird\u2019s eye view of every aspect of their expenses and outgoings<\/del><ins>The most common Excel functions for ROI calculations are basic arithmetic division (=B2\/B3), SUM for totaling costs and returns, and the RATE function for annualized return calculations<\/ins><\/span>. You can also use <span data-changeset=\"true\" data-reason=\"Swapped a vague template claim for a specific note about IF functions so the content is more instructional.\"><del>it to forecast where your current financial path is going to take you in the future<\/del><ins>IF functions to flag investments that meet a target ROI threshold<\/ins><\/span>.<\/p>\n    <\/div>\n  <\/div>\n    <div class=\"accordion__item\">\n    <a class=\"accordion__button d-block\" data-toggle=\"collapse\" data-parent=\"#faq-faqs\" href=\"#q-faqs-7\" aria-expanded=\"false\">\n      <h3 class=\"accordion__question\">Budget Tracking TemplateCan monday AI Work Platform replace Excel for ROI tracking?        \n          \n        \n      <\/h3>\n    <\/a>\n    <div id=\"q-faqs-7\" class=\"accordion__answer collapse collapse--md\" data-parent=\"#faq-faqs\">\n      <p><span data-changeset=\"true\" data-reason=\"Replaced template promotion copy with a concise FAQ answer about how monday AI Work Platform can replace manual Excel tracking.\"><del>monday.com\u2019s <a href=\"https:\/\/monday.com\/templates\/budget-tracker\" target=\"_blank\">Budget Tracker Template<\/a> offers you the chance to get a crystal-clear picture of how much your team is spending and then look at how that spending compares against what you\u2019d originally budgeted. This template is 100% customizable, which means you can reorder line items, tag expenses, and create your own unique spending plan to keep things on track<\/del><ins>Yes, the platform replaces manual Excel ROI tracking with formula columns that auto-calculate, dashboards that display live metrics, and automations that update figures whenever project data changes. Teams report an average 8x ROI from using monday AI Work Platform<\/ins><\/span>.<\/p>\n    <\/div>\n  <\/div>\n  {\n    \"@context\": \"https:\\\/\\\/schema.org\",\n    \"@type\": \"FAQPage\",\n    \"mainEntity\": [\n        {\n            \"@type\": \"Question\",\n            \"name\": \"What is the formula for calculating ROI?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p><span data-changeset=\"true\" data-reason=\"Added a direct FAQ answer with the standard ROI formula for quick-reference readers.\"><del>A potential issue with calculating ROI is that it doesn\\u2019t totally eradicate all risk or uncertainty. But to make sure you\\u2019re getting all your calculations spot-on, you\\u2019re going to want to remove as much human error as possible<ins>The formula for calculating ROI is (Net Profit \\\/ Cost of Investment) x 100. This gives you a percentage that shows how much return you earned relative to what you spent.\\n\"\n            }\n        },\n        {\n            \"@type\": \"Question\",\n            \"name\": \"What is a good ROI percentage?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p><span data-changeset=\"true\" data-reason=\"Added a concise benchmark-based FAQ answer for readers seeking a quick definition of good ROI.\"><ins>A good ROI percentage depends on the investment type and industry. For stock market investments, 7-10% annually is a common benchmark, while marketing campaigns often target a 5:1 return ratio (500% ROI).\\n\"\n            }\n        },\n        {\n            \"@type\": \"Question\",\n            \"name\": \"How do you calculate a 10% ROI?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p><span data-changeset=\"true\" data-reason=\"Added a direct 10 percent ROI example so readers can translate the formula into a target return.\"><ins>To calculate a 10% ROI, you need a net profit that equals 10% of your total investment cost. For a $50,000 investment, that means earning $5,000 in net profit \\u2014 so your total return would need to reach $55,000.\\n\"\n            }\n        },\n        {\n            \"@type\": \"Question\",\n            \"name\": \"What is the difference between ROI and annualized ROI?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p><span data-changeset=\"true\" data-reason=\"Added a concise explanation of the difference between ROI and annualized ROI for quick scanning.\"><ins>Standard ROI measures total return regardless of time period, while annualized ROI adjusts the return to reflect a per-year rate. Annualized ROI is more useful when comparing investments held for different durations because it normalizes the time factor.\\n\"\n            }\n        },\n        {\n            \"@type\": \"Question\",\n            \"name\": \"Does ROI account for the time value of money?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p><span data-changeset=\"true\" data-reason=\"Replaced a broad calculator explanation with a direct FAQ answer clarifying that basic ROI does not account for the time value of money.\"><del>Calculating ROI in Excel is simple. Deciding which ROI calculator to use is a little bit more difficult. Excel\\u2019s ROI formula calculator is essentially a system of formulas you can use to figure out a range of ROI calculations \\u2014 from return on equity (ROE) and internal rate of return (IRR), to annualized ROI and return on assets<ins>No, the basic ROI formula does not account for the time value of money. It treats every dollar the same regardless of when it was earned. For time-adjusted returns, use annualized ROI or net present value (NPV) instead.\\n\"\n            }\n        },\n        {\n            \"@type\": \"Question\",\n            \"name\": \"Expense Tracking TemplateWhat Excel functions are used for ROI calculations?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p><span data-changeset=\"true\" data-reason=\"Replaced template promotion copy with a practical FAQ answer about Excel functions used for ROI.\"><del>Want to get more proactive about your finances? Check out our <a href=\"https:\\\/\\\/monday.com\\\/templates\\\/expense-tracking\" target=\"_blank\">Expense Tracking Template . This dynamic template offers teams a flexible bird\\u2019s eye view of every aspect of their expenses and outgoings<ins>The most common Excel functions for ROI calculations are basic arithmetic division (=B2\\\/B3), SUM for totaling costs and returns, and the RATE function for annualized return calculations. You can also use <span data-changeset=\"true\" data-reason=\"Swapped a vague template claim for a specific note about IF functions so the content is more instructional.\"><del>it to forecast where your current financial path is going to take you in the future<ins>IF functions to flag investments that meet a target ROI threshold.\\n\"\n            }\n        },\n        {\n            \"@type\": \"Question\",\n            \"name\": \"Budget Tracking TemplateCan monday AI Work Platform replace Excel for ROI tracking?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p><span data-changeset=\"true\" data-reason=\"Replaced template promotion copy with a concise FAQ answer about how monday AI Work Platform can replace manual Excel tracking.\"><del>monday.com\\u2019s <a href=\"https:\\\/\\\/monday.com\\\/templates\\\/budget-tracker\" target=\"_blank\">Budget Tracker Template offers you the chance to get a crystal-clear picture of how much your team is spending and then look at how that spending compares against what you\\u2019d originally budgeted. This template is 100% customizable, which means you can reorder line items, tag expenses, and create your own unique spending plan to keep things on track<ins>Yes, the platform replaces manual Excel ROI tracking with formula columns that auto-calculate, dashboards that display live metrics, and automations that update figures whenever project data changes. Teams report an average 8x ROI from using monday AI Work Platform.\\n\"\n            }\n        }\n    ]\n}<\/div>\n\n\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Staying on top of your company\u2019s finances is absolutely critical. Regardless of industry or what sort of goods or services you\u2019re selling, you need to know how much money is going into and out of the business because that\u2019s going to tell you how worthwhile everything you\u2019re doing is. This &#8230;<\/p>\n","protected":false},"author":5,"featured_media":221512,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"pages\/cornerstone-primary.php","format":"standard","meta":{"_acf_changed":false,"monday_item_id":18040632430,"monday_board_id":0,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[13996,13916],"tags":[],"class_list":["post-90455","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-administration","category-task-management"],"acf":{"lobby_image":false,"post_thumbnail_title":"","hide_post_info":false,"hide_bottom_cta":false,"hide_from_blog":false,"cluster":"","display_dates":"default","banner_url":"http:\/\/auth.monday.com\/solutions\/add_solution?solution_id=10049447","main_text_banner":"Get the ROI formula excel","sub_title_banner":"Join the 152K+ customers that use monday.com","sub_title_banner_second":"","banner_button_text":"","below_banner_line":"","use_customized_cta":false,"display_subscribe_widget":false,"custom_schema_code":"","landing_page_layout":false,"featured_image_link":"","sidebar_color_banner":"","custom_tags":false,"faqs":[{"faq_title":"FAQs","faq_shortcode":"faqs","faq":[{"question":"What is the formula for calculating ROI?","answer":"<p><span data-changeset=\"true\" data-reason=\"Added a direct FAQ answer with the standard ROI formula for quick-reference readers.\"><del>A potential issue with calculating ROI is that it doesn\u2019t totally eradicate all risk or uncertainty. But to make sure you\u2019re getting all your calculations spot-on, you\u2019re going to want to remove as much human error as possible<\/del><ins>The formula for calculating ROI is (Net Profit \/ Cost of Investment) x 100. This gives you a percentage that shows how much return you earned relative to what you spent<\/ins><\/span>.<\/p>\n"},{"question":"What is a good ROI percentage?","answer":"<p><span data-changeset=\"true\" data-reason=\"Added a concise benchmark-based FAQ answer for readers seeking a quick definition of good ROI.\"><ins>A good ROI percentage depends on the investment type and industry. For stock market investments, 7-10% annually is a common benchmark, while marketing campaigns often target a 5:1 return ratio (500% ROI).<\/ins><\/span><\/p>\n"},{"question":"How do you calculate a 10% ROI?","answer":"<p><span data-changeset=\"true\" data-reason=\"Added a direct 10 percent ROI example so readers can translate the formula into a target return.\"><ins>To calculate a 10% ROI, you need a net profit that equals 10% of your total investment cost. For a $50,000 investment, that means earning $5,000 in net profit \u2014 so your total return would need to reach $55,000.<\/ins><\/span><\/p>\n"},{"question":"What is the difference between ROI and annualized ROI?","answer":"<p><span data-changeset=\"true\" data-reason=\"Added a concise explanation of the difference between ROI and annualized ROI for quick scanning.\"><ins>Standard ROI measures total return regardless of time period, while annualized ROI adjusts the return to reflect a per-year rate. Annualized ROI is more useful when comparing investments held for different durations because it normalizes the time factor.<\/ins><\/span><\/p>\n"},{"question":"Does ROI account for the time value of money?","answer":"<p><span data-changeset=\"true\" data-reason=\"Replaced a broad calculator explanation with a direct FAQ answer clarifying that basic ROI does not account for the time value of money.\"><del>Calculating ROI in Excel is simple. Deciding which ROI calculator to use is a little bit more difficult. Excel\u2019s ROI formula calculator is essentially a system of formulas you can use to figure out a range of ROI calculations \u2014 from return on equity (ROE) and internal rate of return (IRR), to annualized ROI and return on assets<\/del><ins>No, the basic ROI formula does not account for the time value of money. It treats every dollar the same regardless of when it was earned. For time-adjusted returns, use annualized ROI or net present value (NPV) instead<\/ins><\/span>.<\/p>\n"},{"question":"Expense Tracking TemplateWhat Excel functions are used for ROI calculations?","answer":"<p><span data-changeset=\"true\" data-reason=\"Replaced template promotion copy with a practical FAQ answer about Excel functions used for ROI.\"><del>Want to get more proactive about your finances? Check out our <a href=\"https:\/\/monday.com\/templates\/expense-tracking\" target=\"_blank\">Expense Tracking Template<\/a> . This dynamic template offers teams a flexible bird\u2019s eye view of every aspect of their expenses and outgoings<\/del><ins>The most common Excel functions for ROI calculations are basic arithmetic division (=B2\/B3), SUM for totaling costs and returns, and the RATE function for annualized return calculations<\/ins><\/span>. You can also use <span data-changeset=\"true\" data-reason=\"Swapped a vague template claim for a specific note about IF functions so the content is more instructional.\"><del>it to forecast where your current financial path is going to take you in the future<\/del><ins>IF functions to flag investments that meet a target ROI threshold<\/ins><\/span>.<\/p>\n"},{"question":"Budget Tracking TemplateCan monday AI Work Platform replace Excel for ROI tracking?","answer":"<p><span data-changeset=\"true\" data-reason=\"Replaced template promotion copy with a concise FAQ answer about how monday AI Work Platform can replace manual Excel tracking.\"><del>monday.com\u2019s <a href=\"https:\/\/monday.com\/templates\/budget-tracker\" target=\"_blank\">Budget Tracker Template<\/a> offers you the chance to get a crystal-clear picture of how much your team is spending and then look at how that spending compares against what you\u2019d originally budgeted. This template is 100% customizable, which means you can reorder line items, tag expenses, and create your own unique spending plan to keep things on track<\/del><ins>Yes, the platform replaces manual Excel ROI tracking with formula columns that auto-calculate, dashboards that display live metrics, and automations that update figures whenever project data changes. Teams report an average 8x ROI from using monday AI Work Platform<\/ins><\/span>.<\/p>\n"}]}],"activate_cta_banner":false,"hide_time_to_read":false,"cornerstone_hero_cta_override":{"label":"","url":""},"menu_cta_override":{"label":"","url":""},"show_contact_sales_button":"default","override_contact_sales_label":"","override_contact_sales_url":"","custom_header_banner":false,"parse_from_google_doc":false,"sections":[{"acf_fc_layout":"content_1","blocks":[{"main_heading":"","content_block":[{"acf_fc_layout":"text","content":"<p><span data-changeset=\"true\" data-reason=\"Replaced a redundant title-style line with a real introduction paragraph so the article opens with expanded, useful context.\"><del>ROI Formula In Excel: How To Calculate Returns Accurately (2026)<\/del><ins>Every finance team has been there: a dozen spreadsheets open, formulas referencing the wrong cells, and a stakeholder asking for updated ROI numbers by end of day. Calculating return on investment is straightforward when you have the right formula \u2014 and Excel makes it easy to build a reusable setup for any project, campaign, or purchase.<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"#content\" target=\"_blank\">Skip to main content<\/a><a href=\"#footer\" target=\"_blank\">Skip to footer<\/a><\/del><\/span><\/p>\n<ul>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/\" target=\"_blank\">monday.com<\/a><\/del><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/\" target=\"_blank\">English<\/a><\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/es\/\" target=\"_blank\">Espa\u00f1ol<\/a><\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/pt\/\" target=\"_blank\">Portugu\u00eas<\/a><\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/fr\/\" target=\"_blank\">Fran\u00e7ais<\/a><\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/de\/\" target=\"_blank\">Deutsch<\/a><\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/ja\/\" target=\"_blank\">\u65e5\u672c\u8a9e<\/a><\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/ko\/\" target=\"_blank\">\ud55c\uad6d\uc5b4<\/a><\/del><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/auth.monday.com\/users\/sign_up_new\" target=\"_blank\">Get started<\/a><\/del><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"#submenu-mbmenu-1\" target=\"_blank\">Topics<\/a><\/del><\/span><\/p>\n<ul>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/project-management\/\" target=\"_blank\">Project management<\/a><\/del><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/crm-and-sales\/\" target=\"_blank\">CRM and sales<\/a><\/del><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/rnd\/\" target=\"_blank\">Product development life cycle<\/a><\/del><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/service\/\" target=\"_blank\">Service management<\/a><\/del><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/ai-agents\/\" target=\"_blank\">AI Agents<\/a><\/del><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/marketing\/\" target=\"_blank\">Marketing<\/a><\/del><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/construction\/\" target=\"_blank\">Construction management<\/a><\/del><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/monday-campaigns\/\" target=\"_blank\">monday campaigns<\/a><\/del><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/product\/\" target=\"_blank\">monday.com updates<\/a><\/del><\/span><\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/auth.monday.com\/users\/sign_up_new\" target=\"_blank\">Get started<\/a><\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed navigation or site-chrome content that does not support the refreshed ROI article so the page stays focused on the new long-form outline.\"><del><a href=\"https:\/\/monday.com\/blog\/task-management\/\" target=\"_blank\">Task management<\/a><\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed author, date, share, or other page-level metadata from the article body to keep the refresh focused on the content itself.\"><del>[<\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed author, date, share, or other page-level metadata from the article body to keep the refresh focused on the content itself.\"><del>monday.com](https:\/\/monday.com\/blog\/author\/the-monday-com-team\/)<\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed author, date, share, or other page-level metadata from the article body to keep the refresh focused on the content itself.\"><del>\u2022Jan 9, 2025 \u20226 min read<\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed author, date, share, or other page-level metadata from the article body to keep the refresh focused on the content itself.\"><del><a href=\"https:\/\/auth.monday.com\/users\/sign_up_new\" target=\"_blank\">Get started<\/a><a href=\"https:\/\/monday.com\/ap\/mondayforenterprise?utm_campaign=contact-sales-button&amp;utm_source=blog\" target=\"_blank\">Contact sales<\/a><\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed author, date, share, or other page-level metadata from the article body to keep the refresh focused on the content itself.\"><del>Link Copied!<\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed the old table of contents links because the article was reorganized under a new outline and section order.\"><del><a href=\"#text-block-2\" target=\"_blank\">What is an ROI formula in Excel?<\/a><\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed the old table of contents links because the article was reorganized under a new outline and section order.\"><del><a href=\"#text-block-3\" target=\"_blank\">Why use an ROI formula in Excel?<\/a><\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed the old table of contents links because the article was reorganized under a new outline and section order.\"><del><a href=\"#text-block-4\" target=\"_blank\">What are some examples of ROI formulas in Excel?<\/a><\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed the old table of contents links because the article was reorganized under a new outline and section order.\"><del><a href=\"#text-block-5\" target=\"_blank\">monday.com\u2019s ROI formula template for Excel alternative<\/a><\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed the old table of contents links because the article was reorganized under a new outline and section order.\"><del><a href=\"#text-block-6\" target=\"_blank\">Related templates<\/a><\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed the broad business-finance setup so the introduction could focus faster on ROI in Excel, matching search intent.\"><del>Staying on top of your company\u2019s finances is absolutely critical. Regardless of industry or what sort of goods or services you\u2019re selling, you need to know how much money is going into and out of the business because that\u2019s going to tell you how worthwhile everything you\u2019re doing is.<\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Rewrote this sentence to clearly define ROI and Excel's role, replacing a vaguer setup line.\"><del>This is often called \u201cworking out your ROI\u201d (Return on Investment), and it can be done using a fairly simple calculation<\/del><ins>ROI \u2014 return on investment \u2014 is one of the most straightforward ways to measure whether a project, campaign, or purchase was worth the spend. And Excel remains the go-to for running those calculations because it\u2019s familiar, flexible, and already sitting on most company laptops<\/ins><\/span>. <span data-changeset=\"true\" data-reason=\"Replaced the old promotional overview with a more practical benefit statement about repeatable ROI calculations in Excel.\"><del>In this guide, we\u2019ll explain the importance of ROI, how to use it in Excel, and most importantly how to supercharge those calculations and avoid wasted manual time with monday.com\u2019s ROI formula template<\/del><ins>Knowing how to set up an ROI formula in Excel gives you a repeatable way to evaluate any investment in minutes<\/ins><\/span>.<\/p>\n"}]},{"main_heading":"What is an ROI formula in Excel?","content_block":[{"acf_fc_layout":"text","content":"<p><span data-changeset=\"true\" data-reason=\"Replaced the brief preface with a fuller article roadmap that previews formulas, examples, step-by-step instructions, limitations, and automation.\"><del>Before we talk ROI formulas, let\u2019s pump the brakes and cover what ROI is<\/del><ins>Below, you\u2019ll find the core ROI formula, 4 common variations with worked examples, a step-by-step guide to building your own ROI calculator spreadsheet, and a look at where Excel falls short for ongoing tracking. We\u2019ll also explore how a connected platform can automate the tracking process so your numbers stay accurate without the manual upkeep<\/ins><\/span>.<\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added a CTA button in the new position called for by the refreshed outline.\"><ins><a class=\"cta-button blue-button\" aria-label=\"\" href=\"https:\/\/auth.monday.com\/users\/sign_up_new\" target=\"_blank\"><\/a><\/ins><\/span><\/p>\n"}]},{"main_heading":"Key takeaways:","content_block":[{"acf_fc_layout":"text","content":"<p><span data-changeset=\"true\" data-reason=\"Added an overview paragraph to introduce the new key takeaways section and improve scannability.\"><ins>Here\u2019s a snapshot of what this article covers \u2014 from the core formula to advanced variations and where Excel reaches its limits. Whether you\u2019re new to ROI calculations or refining your spreadsheet setup, these points give you the essentials at a glance.<\/ins><\/span><\/p>\n<ul>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a takeaway highlighting the core ROI formula because the brief called for key takeaways.\"><ins><strong>The basic ROI formula is (Net Profit \/ Cost of Investment) x 100<\/strong> \u2014 it gives you a percentage that shows how much return you earned relative to what you spent.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a takeaway summarizing the 5-step Excel calculator walkthrough that was missing from the old version.\"><ins><strong>You can build a functional ROI calculator in Excel in 5 steps<\/strong> \u2014 from labeling columns to adding conditional formatting that color-codes profitable and unprofitable investments.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a takeaway summarizing the 4 ROI formula variations to preview the expanded examples section.\"><ins><strong>4 ROI formula variations cover different scenarios:<\/strong> net income ROI, capital gain ROI, total return ROI, and annualized ROI each answer a slightly different financial question.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a takeaway about ROI limitations because the brief specifically required a limitations section.\"><ins><strong>ROI has real limitations:<\/strong> it doesn\u2019t account for the time value of money, ignores risk, and provides a static snapshot that can become outdated fast.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a takeaway explaining the connected-platform alternative to support the expanded product section.\"><ins><strong>A connected platform replaces manual Excel ROI tracking<\/strong> with formula columns that auto-calculate, dashboards that display live metrics, and automations that update figures whenever project data changes.<\/ins><\/span><\/p>\n<\/li>\n<\/ul>\n"}]},{"main_heading":"What is return on investment (ROI)?","content_block":[{"acf_fc_layout":"text","content":"<p><span data-changeset=\"true\" data-reason=\"Added a clear explanation of what ROI measures so readers can understand the metric before getting into formulas.\"><ins>So how do you know whether a project was worth the spend? That\u2019s exactly what ROI answers. Return on investment is a performance metric that measures how much profit \u2014 or loss \u2014 an investment generates relative to its cost. It\u2019s expressed as a percentage, making it straightforward to compare across different projects, campaigns, or assets.<\/ins><\/span><\/p>\n"}]},{"main_heading":"","content_block":[{"acf_fc_layout":"colored_notification","text":"<p>In its most basic form,ROI is a direct measure of return showing how much money you\u2019ve made on a particular investment in relation to the cost ofinvestment over a time periodthat investment.<\/p>\n","quote":false,"author":"","position":"","avatar":false}]},{"main_heading":"","content_block":[{"acf_fc_layout":"text","content":"<p><span data-changeset=\"true\" data-reason=\"Added context on why ROI matters, plus refreshed internal links, to make the definition section more useful and align with the link refresh.\"><ins>ROI matters because it simplifies complex financial decisions into a single, comparable number. Whether you\u2019re evaluating a <a href=\"https:\/\/monday.com\/blog\/marketing\/marketing-roi\/\" target=\"_blank\">marketing campaign\u2019s return<\/a>, a new piece of equipment, or a software subscription, ROI tells you if the dollars you put in generated more dollars coming out. Teams use it to prioritize investments, justify budgets, and <a href=\"https:\/\/monday.com\/blog\/project-management\/communications-plan-template\/\" target=\"_blank\">communicate results<\/a> to stakeholders who need fast answers, not lengthy financial reports.<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added the basic formula with a simple numeric example to strengthen the expanded ROI definition section.\"><ins>The basic formula looks like this: ROI = (Net Profit \/ Cost of Investment) x 100. If you invested $10,000 and earned $12,500 back, your net profit is $2,500 and your ROI is 25%. Simple enough \u2014 but there\u2019s a catch. Standard ROI doesn\u2019t account for the time value of money, meaning a 25% return over 1 year looks identical to a 25% return over 5 years. We\u2019ll cover that limitation \u2014 and how to handle it \u2014 later in this article.<\/ins><\/span><\/p>\n"}]},{"main_heading":"The basic ROI formula and how it works","content_block":[{"acf_fc_layout":"text","content":"<p><span data-changeset=\"true\" data-reason=\"Introduced the simple ROI equation in its own section to support the new educational structure.\"><ins>What is the simple equation for ROI? At its core, the ROI formula has two variables and one operation:<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added bolded formula text so the main equation is easy to scan within the new section.\"><ins><strong>ROI = (Net Profit \/ Cost of Investment) x 100<\/strong><\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Replaced a generic definition with a clearer explanation of what net profit and cost of investment mean.\"><del>Return on investment (ROI) is a key business performance metric that companies and individuals use to calculate how efficient or profitable their investment is<\/del><ins>Here\u2019s what each part means. Net profit is the difference between what you earned and what you spent. Cost of investment is the total amount you originally put in<\/ins><\/span>. <span data-changeset=\"true\" data-reason=\"Added an explanation of why the formula is multiplied by 100 so readers understand how the percentage is derived.\"><del>It can also be used to compare different types of investments to figure out your net profit for each investment option<\/del><ins>Multiplying by 100 converts the decimal into a percentage so you can compare it across investments without reaching for a calculator<\/ins><\/span>.<\/p>\n<p><span data-changeset=\"true\" data-reason=\"Replaced the standalone template link with a worked example here because the brief keeps the download link in the step-by-step section.\"><del><a href=\"https:\/\/monday.com\/blog\/wp-content\/uploads\/2022\/07\/ROI_Financial_Statement.xlsx\" target=\"_blank\">Download Excel template<\/a><\/del><ins>Let\u2019s walk through a quick example. Suppose your team spends $10,000 on a paid advertising campaign. At the end of the quarter, that campaign generated $12,500 in revenue directly attributed to those ads. Here\u2019s the math:<\/ins><\/span><\/p>\n<ul>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a bullet showing how to calculate net profit so the example is easier to follow.\"><ins><strong>Net Profit:<\/strong> $12,500 &#8211; $10,000 = $2,500<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a bullet showing the ROI math result so the example is explicit and scannable.\"><ins><strong>ROI:<\/strong> ($2,500 \/ $10,000) x 100 = 25%<\/ins><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span data-changeset=\"true\" data-reason=\"Added interpretation guidance so readers know what positive and negative ROI mean and when annualized ROI is more useful.\"><ins>A positive ROI \u2014 anything above 0% \u2014 means the investment returned more than it cost. A negative ROI means you lost money. The higher the percentage, the more profitable the investment relative to its cost. Keep in mind that this basic formula gives you a total return figure regardless of how long the investment took to pay off. For time-adjusted comparisons, you\u2019ll want the annualized ROI variation covered below.<\/ins><\/span><\/p>\n"}]},{"main_heading":"4 common ROI formula variations in Excel","content_block":[{"acf_fc_layout":"text","content":"<p><span data-changeset=\"true\" data-reason=\"Added an introduction to explain why multiple ROI formulas are needed for different scenarios.\"><ins>The basic ROI formula works for quick, one-off calculations. But different financial scenarios call for different approaches. Each of the 4 variations below answers a slightly different question, and each one translates neatly into an Excel formula with specific cell references. Which one is right for your situation? That depends on what you\u2019re measuring and how precise you need to be.<\/ins><\/span><\/p>\n<h3>Net income ROI<\/h3>\n<p><span data-changeset=\"true\" data-reason=\"Reframed this subsection around net income ROI instead of the older general wording so it fits the new outline.\"><del>You can also compare your ROI over multiple time periods to calculate the growth rate at which your returns may have changed. To calculate your team\u2019s ROI, you\u2019d use a basic ROI<\/del><ins>This is the most common version and the closest to the basic<\/ins><\/span> formula. <span data-changeset=\"true\" data-reason=\"Clarified that this variation uses net income after expenses, making the formula explanation more precise.\"><del>That calculation is just the return \u2014 or net income \u2014 your investment has generated divided<\/del><ins>Net income ROI divides your net income (revenue minus all expenses)<\/ins><\/span> by the cost of <span data-changeset=\"true\" data-reason=\"Removed a redundant filler word to tighten the formula sentence.\"><del>that\u00a0<\/del><\/span>investment.<span data-changeset=\"true\" data-reason=\"Removed an extra closing sentence because the new formula and example already explain the profitability takeaway.\"><del>\u00a0The resulting ratio or percentage will tell you how profitable that investment, project, or product really is.<\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added the net income ROI formula in a bold, easy-to-scan format.\"><ins><strong>Formula:<\/strong> ROI = Net Income \/ Cost of Investment<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added an Excel cell-reference example so readers can apply the net income ROI formula directly.\"><ins>In Excel, if your net income sits in cell B2 and your cost of investment is in B3, the formula is simply <strong>=B2\/B3<\/strong>. Format the result as a percentage. For example, if a product launch generated $45,000 in net income on a $30,000 investment, your ROI is 150% \u2014 meaning you earned $1.50 for every $1 spent.<\/ins><\/span><\/p>\n<h3>Capital gain ROI<\/h3>\n<p><span data-changeset=\"true\" data-reason=\"Added a plain-language explanation of capital gain ROI so the variation is clearly distinguished from the basic formula.\"><ins>Capital gain ROI measures the profit from selling an asset relative to what you originally paid for it. It\u2019s most common in stock portfolios and real estate.<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added the capital gain formula in a bold format for quick reference.\"><ins><strong>Formula:<\/strong> ROI = (Sale Price &#8211; Purchase Price) \/ Purchase Price<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added an Excel example with sample numbers to make the capital gain formula actionable.\"><ins>In Excel: <strong>=(B2-B3)\/B3<\/strong> where B2 is the sale price and B3 is the purchase price. If you purchased a property for $200,000 and sold it for $260,000, your capital gain ROI is 30%.<\/ins><\/span><\/p>\n<h3>Total return ROI<\/h3>\n<p><span data-changeset=\"true\" data-reason=\"Added an explanation of total return ROI so readers understand that extra income is included.\"><ins>Total return is similar to capital gain but includes additional income generated by the investment \u2014 dividends, interest payments, or rental income on top of the price change.<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added the total return formula in a bold format for clarity.\"><ins><strong>Formula:<\/strong> ROI = (Ending Value &#8211; Starting Value) \/ Cost of Investment<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added an Excel example showing how total return ROI is calculated with cell references.\"><ins>In Excel: <strong>=(B2-B3)\/B4<\/strong> where B2 is your ending value (including all income received), B3 is your starting value, and B4 is your original cost. Total return gives a fuller picture because it captures every dollar the investment produced, not just the sale price.<\/ins><\/span><\/p>\n<h3>Annualized ROI<\/h3>\n<p><span data-changeset=\"true\" data-reason=\"Added context on why standard ROI can mislead when time periods differ, setting up the need for annualized ROI.\"><ins>Here\u2019s where things get more interesting. Standard ROI ignores time, which makes it unreliable for comparing investments held over different periods. A 60% return over 2 years sounds impressive \u2014 but is it more impressive than a 40% return over 1 year? Annualized ROI answers that question by normalizing returns to a per-year basis.<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added the annualized ROI formula in a bold format for quick reference.\"><ins><strong>Formula:<\/strong> Annualized ROI = (Ending Value \/ Starting Value) ^ (1 \/ Number of Years) &#8211; 1<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added the Excel version and a comparison example so readers can use annualized ROI correctly.\"><ins>In Excel: <strong>=(B2\/B3)^(1\/B4)-1<\/strong> where B2 is your ending value, B3 is your starting value, and B4 is the number of years. Alternatively, you can use Excel\u2019s built-in RATE function for more complex scenarios involving periodic payments. For the example above: a $10,000 investment that grows to $16,000 over 2 years has a total ROI of 60%, but an annualized ROI of about 26.5%. Compare that to a $10,000 investment returning $14,000 in 1 year \u2014 a 40% annualized ROI that significantly outperforms the two-year option on a per-year basis.<\/ins><\/span><\/p>\n"}]},{"main_heading":"How to build an ROI calculator in Excel (5 steps)","content_block":[{"acf_fc_layout":"text","content":"<p><span data-changeset=\"true\" data-reason=\"Added a practical introduction to the calculator walkthrough and kept the download template link in the step-by-step section per the link refresh.\"><ins>Ready to move from theory to practice? Building a reusable ROI calculator in Excel takes about 10 minutes and saves hours of ad-hoc calculations down the road. Follow these 5 steps to create a spreadsheet you can use for any investment \u2014 marketing campaigns, capital expenditures, software purchases, or project evaluations. You can also <a href=\"https:\/\/monday.com\/blog\/wp-content\/uploads\/2022\/07\/ROI_Financial_Statement.xlsx\" target=\"_blank\">download our free Excel template<\/a> to get a head start.<\/ins><\/span><\/p>\n<h3>Step 1: set up your spreadsheet columns<\/h3>\n<p><span data-changeset=\"true\" data-reason=\"Added instructions for setting up spreadsheet columns so readers can build the calculator from scratch.\"><ins>Open a new Excel workbook and create 4 column headers in row 1: <strong>Investment Name<\/strong> (column A), <strong>Cost of Investment<\/strong> (column B), <strong>Net Return<\/strong> (column C), and <strong>ROI<\/strong> (column D). Select the entire range and format it as an Excel Table (Ctrl+T) \u2014 this makes it easier to add new rows later without breaking your formulas.<\/ins><\/span><\/p>\n<h3>Step 2: enter your investment data<\/h3>\n<p><span data-changeset=\"true\" data-reason=\"Added guidance on entering and formatting investment data so the spreadsheet setup is consistent.\"><ins>Starting in row 2, enter each investment on its own row. Type the name in column A, the total cost in column B, and the net return (total revenue or ending value) in column C. Use consistent currency formatting across both financial columns: select columns B and C, right-click, choose \u201cFormat Cells,\u201d and select Currency with 2 decimal places.<\/ins><\/span><\/p>\n<h3>Step 3: write the ROI formula<\/h3>\n<p><span data-changeset=\"true\" data-reason=\"Added the exact Excel formula for ROI so readers can implement the calculator directly.\"><ins>Click into cell D2 and type the formula: <strong>=(C2-B2)\/B2<\/strong>. This subtracts your cost from your return, then divides by the cost to give you ROI as a decimal. Select Enter. If you formatted your data as a Table in Step 1, Excel will automatically fill the formula down for every row you add.<\/ins><\/span><\/p>\n<h3>Step 4: format the result as a percentage<\/h3>\n<p><span data-changeset=\"true\" data-reason=\"Added instructions for formatting ROI results as percentages so the outputs are easier to interpret.\"><ins>Select column D, right-click, and choose \u201cFormat Cells.\u201d Under the Number tab, select Percentage and set decimal places to 1 or 2 \u2014 whatever precision your stakeholders prefer. Your ROI values will now display as readable percentages instead of raw decimals.<\/ins><\/span><\/p>\n<h3>Step 5: add conditional formatting for quick analysis<\/h3>\n<p><span data-changeset=\"true\" data-reason=\"Added conditional-formatting guidance so profitable and unprofitable investments are easier to scan.\"><ins>Highlight the ROI column, go to Home &gt; Conditional Formatting, and create two rules. First: format cells greater than 0 with a green fill and dark green text. Second: format cells less than 0 with a red fill and dark red text. Now every positive ROI glows green and every loss stands out in red \u2014 making it easy to scan dozens of investments at a glance. You can also add Data Bars or Icon Sets for a more visual comparison across rows.<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added a CTA button in the new position called for by the refreshed outline.\"><ins><a class=\"cta-button blue-button\" aria-label=\"\" href=\"https:\/\/auth.monday.com\/users\/sign_up_new\" target=\"_blank\"><\/a><\/ins><\/span><\/p>\n"}]},{"main_heading":"What ROI does and doesn\u2019t measure","content_block":[{"acf_fc_layout":"text","content":"<p><span data-changeset=\"true\" data-reason=\"Rewrote the opening of this section to frame both what ROI measures and what it misses, instead of only mentioning one limitation.\"><del>It\u2019s important to note that ROI doesn\u2019t generally consider<\/del><ins>ROI is powerful precisely because it\u2019s simple. But that simplicity comes with trade-offs. Understanding where the formula needs support helps you make more accurate decisions \u2014 and know when to bring in additional metrics. Does ROI account for the<\/ins><\/span> time value of money<span data-changeset=\"true\" data-reason=\"Replaced the longer TVM definition with a shorter transition because the section now covers several limitations, not just one.\"><del>\u00a0(TVM), which is the popular accounting theory that an amount of money you get today will be worth more than receiving the exact same amount at some point in the future<\/del><ins>? No, and that\u2019s just one of several gaps worth knowing about<\/ins><\/span>.<span data-changeset=\"true\" data-reason=\"Removed the old standalone sentence because the rewritten section explains the limitation more clearly in the new structure.\"><del>\u00a0ROI treats every dollar the same \u2014 no matter when your business has earned it.<\/del><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added an introductory line to set up the list of ROI limitations.\"><ins>Here are the key limitations to consider before relying on ROI as your only measure:<\/ins><\/span><\/p>\n<ul>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a limitation about the time value of money because the brief required this gap to be covered.\"><ins><strong>Does not account for the time value of money:<\/strong> A 50% return over 1 year is far more valuable than a 50% return over 10 years. The basic ROI formula treats both identically. For time-adjusted analysis, use annualized ROI or net present value (NPV).<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a limitation about risk so readers do not treat identical ROI figures as equally safe.\"><ins><strong>Ignores risk:<\/strong> Two investments can show identical ROI numbers while carrying vastly different risk profiles. A government bond and a startup investment might both return 15%, but the probability of achieving that return differs dramatically.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a limitation about cost allocation to show how ROI can be distorted by inconsistent inputs.\"><ins><strong>Can be manipulated by cost allocation:<\/strong> Different teams may define \u201ccost of investment\u201d differently. Include only direct costs, and your ROI looks stellar. Include overhead, labor, and opportunity costs, and the picture changes.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a limitation about inconsistent definitions across teams to make cross-functional use more realistic.\"><ins><strong>No standardized definition across organizations:<\/strong> Marketing teams, finance teams, and operations teams often calculate ROI using slightly different inputs \u2014 which makes cross-departmental comparisons unreliable without agreed-upon definitions.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a limitation about ROI being a static snapshot, which supports the brief's move toward live tracking.\"><ins><strong>Provides a static snapshot:<\/strong> A single ROI calculation captures one moment in time. It won\u2019t tell you if returns are trending up or down, or if a project that looked profitable last quarter is now underperforming.<\/ins><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span data-changeset=\"true\" data-reason=\"Added a transition to the product section by showing why teams may outgrow static spreadsheets.\"><ins>What if your ROI calculations could update automatically as new data comes in? That\u2019s exactly the shift from static spreadsheets to live, connected platforms \u2014 and we\u2019ll cover how that works shortly.<\/ins><\/span><\/p>\n"}]},{"main_heading":"What is a good ROI percentage?","content_block":[{"acf_fc_layout":"text","content":"<p><span data-changeset=\"true\" data-reason=\"Replaced generic Excel-calculator advice with a context-based explanation of what makes ROI good, which better matches the new section goal.\"><del>In Microsoft Office, you can use a built-in Excel calculator to figure out your ROI. All you have to do is complete a spreadsheet with the numbers you\u2019d like to compare<\/del><ins>\u201cGood\u201d ROI isn\u2019t a fixed number \u2014 it depends entirely on context<\/ins><\/span>. The <span data-changeset=\"true\" data-reason=\"Added the main factors that shape a good ROI so the answer is more nuanced and useful.\"><del>formula to calculate your true ROI is pretty simple. You just divide your returns in one cell by your cost in another cell<\/del><ins>industry you\u2019re in, the risk you\u2019re taking, the time horizon of the investment, and the opportunity cost of putting that money elsewhere all shape what counts as a worthwhile return<\/ins><\/span>.<span data-changeset=\"true\" data-reason=\"Added a concrete example to show why a good ROI benchmark depends on the investment type.\"><ins>\u00a0A 10% annual return might be outstanding for a low-risk bond portfolio but underwhelming for a high-growth marketing campaign.<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added benchmark intro text so the new ROI guidance can be scanned quickly.\"><ins>Here are some general benchmarks to use as reference points:<\/ins><\/span><\/p>\n<ul>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a stock-market benchmark to make the good-ROI section more practical.\"><ins><strong>Stock market:<\/strong> ~7-10% annually after inflation is the long-term historical average for diversified portfolios.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a real-estate benchmark to broaden the comparison examples.\"><ins><strong>Real estate:<\/strong> 8-12% annual return is generally considered strong, though it varies by market and property type.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a marketing benchmark to align the article with common business ROI use cases.\"><ins><strong>Marketing campaigns:<\/strong> A 5:1 return ratio (500% ROI) is a common benchmark, meaning $5 earned for every $1 spent.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added a business-project benchmark tied to cost of capital for a more decision-oriented definition of good ROI.\"><ins><strong>Business projects:<\/strong> Any positive ROI may be worthwhile if it exceeds the company\u2019s cost of capital \u2014 the minimum return needed to justify the investment.<\/ins><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span data-changeset=\"true\" data-reason=\"Removed an external image source citation and replaced it with practical guidance on calculating a target ROI, matching the link refresh.\"><del>( <a href=\"https:\/\/blog.hubspot.com\/marketing\/how-to-prove-the-roi-of-your-marketing-slideshare\" target=\"_blank\">Image Source<\/a> )<\/del><ins>How do you calculate a 10% ROI? Rearrange the formula: if you need a 10% return on a $50,000 investment, you need $5,000 in net profit. The required return equals (Target ROI% \/ 100) x Cost of Investment. This works for setting performance targets \u2014 you can calculate exactly how much revenue a campaign or project needs to generate to hit your threshold.<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added advice on annualizing returns so readers can compare investments with different time horizons.\"><ins>When comparing ROI across investments with different holding periods, always annualize the returns first. A 30% total return over 3 years is roughly 9.1% annualized \u2014 which you can then compare directly against a 12% annual return on a 1-year investment.<\/ins><\/span><\/p>\n"}]},{"main_heading":"Why use an ROI formula in Excel?Make your Excel ROI calculator dynamic","content_block":[{"acf_fc_layout":"text","content":"<p><span data-changeset=\"true\" data-reason=\"Added an introduction explaining how to make an ROI spreadsheet more interactive instead of leaving the section generic.\"><ins>A basic ROI spreadsheet gets the job done for one-off calculations, but it becomes more powerful when you add interactive features. These enhancements turn a static table into a flexible analysis dashboard \u2014 all within Excel.<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added an overview line to introduce the new list of dynamic Excel features.\"><ins>Here are 4 features that add real analytical depth:<\/ins><\/span><\/p>\n<ul>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added an IF-formula example so readers can label investments against a target ROI automatically.\"><ins><strong>IF formulas for instant labels:<\/strong> Add a column with <strong>=IF(D2&gt;=0.1,&#8221;Meets Target&#8221;,&#8221;Below Target&#8221;)<\/strong> to instantly flag which investments hit your ROI threshold. Change the 0.1 to whatever target percentage your team has set.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added dropdown guidance so readers can categorize and filter ROI data inside Excel.\"><ins><strong>Dropdown menus for categorization:<\/strong> Use Data Validation to create a dropdown in a \u201cCategory\u201d column (marketing, operations, capital expenditure). This lets you filter and compare ROI by investment type without building separate spreadsheets.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added SUM and AVERAGE examples to support portfolio-level ROI analysis.\"><ins><strong>SUM and AVERAGE for portfolio-level metrics:<\/strong> Add summary rows using <strong>=AVERAGE(D2:D20)<\/strong> for your portfolio\u2019s average ROI and <strong>=SUM(C2:C20)-SUM(B2:B20)<\/strong> for total net profit across all investments.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added chart guidance so readers can visualize ROI comparisons more effectively.\"><ins><strong>Charts for visual comparison:<\/strong> Select your Investment Name and ROI columns, insert a bar chart, and you\u2019ve got a visual ranking of your strongest and weakest investments. Add a reference line at your target ROI to see which investments clear the bar.<\/ins><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span data-changeset=\"true\" data-reason=\"Added a transition explaining that even dynamic Excel sheets still require manual upkeep, which prepares readers for the platform section.\"><ins>These Excel enhancements help \u2014 but they still require manual updates every time your data changes. Every new expense entry, revenue adjustment, or project milestone means opening the spreadsheet, updating cells, and re-checking formulas. For teams tracking ROI across more than a handful of projects, that manual loop becomes the bottleneck.<\/ins><\/span><\/p>\n"}]},{"main_heading":"How monday AI Work Platform replaces manual ROI tracking","content_block":[{"acf_fc_layout":"text","content":"<p><span data-changeset=\"true\" data-reason=\"Added a fuller explanation of Excel's limits in multi-project ROI tracking to support the expanded product section.\"><ins>Excel works for one-time ROI calculations. Tracking return on investment across multiple projects, departments, or quarters reveals the limits of a static spreadsheet. Version control issues, broken formulas, and the constant need to re-enter data are the real costs of manual tracking. Anyone doing <a href=\"https:\/\/monday.com\/blog\/project-management\/project-cost-tracking\/\" target=\"_blank\">project cost tracking<\/a> manually knows these friction points don\u2019t show up in any ROI formula.<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added a transition showing how the platform addresses the spreadsheet problems described above.\"><ins>monday AI Work Platform eliminates those friction points by connecting your financial data to live, auto-updating calculations. Here\u2019s how the platform replaces each piece of the Excel workflow:<\/ins><\/span><\/p>\n<ul>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Replaced a placeholder line with a real product capability that highlights formula columns and dashboards, as requested in the link refresh.\"><del>\u00a0<\/del><ins><strong>Formula columns and<\/strong> <a href=\"https:\/\/monday.com\/features\/dashboards\" target=\"_blank\"><strong>dashboards<\/strong><\/a><strong>:<\/strong> Replace manual Excel formulas with <a href=\"https:\/\/support.monday.com\/hc\/en-us\/articles\/360003340799-The-Formula-Column\" target=\"_blank\">formula columns<\/a> that auto-calculate ROI, net profit, and return ratios across every row. Portfolio-level dashboards display live metrics for stakeholders \u2014 no one needs to request an updated spreadsheet.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added Automations to show how ROI updates can happen automatically in the product section.\"><ins><a href=\"https:\/\/monday.com\/features\/automations\" target=\"_blank\"><strong>Automations<\/strong><\/a><strong>:<\/strong> When project costs or revenue figures change, ROI recalculates instantly. Set up automations to notify your team when an investment drops below a target threshold or when a project hits a milestone that impacts its return.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added monday vibe as a custom app-building option to deepen the product section beyond a template mention.\"><ins><strong>monday vibe:<\/strong> Need a custom ROI calculator app? Describe what you want in plain language and monday vibe builds it for you \u2014 no coding, no complex spreadsheet macros. You get a tailored financial tracking interface in minutes.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added monday agents to show AI-assisted reporting and monitoring in the refreshed product section.\"><ins><strong>monday agents:<\/strong> AI agents generate financial reports on schedule, surface at-risk investments so teams can act early, and track metrics progress against goals automatically. Instead of pulling numbers into a quarterly deck, the data is already waiting for you.<\/ins><\/span><\/p>\n<\/li>\n<li>\n<p><span data-changeset=\"true\" data-reason=\"Added Excel import and integration details so the product section feels practical and connected to existing workflows.\"><ins><strong>Excel import and integrations:<\/strong> Already have years of ROI data in spreadsheets? Import existing Excel files directly into the platform. Integrations with Salesforce, HubSpot, and other revenue sources mean your data flows in automatically \u2014 no copy-paste required.<\/ins><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span data-changeset=\"true\" data-reason=\"Expanded the proof section with ROI, savings, the Forrester TEI study, and relevant internal links to strengthen the product story without relying on thin promotion.\"><ins>The results speak for themselves. Customers report an average 8x ROI from using the platform, with $250,000 saved annually to reinvest elsewhere. An independent <a href=\"https:\/\/monday.com\/p\/forrester-tei\/\" target=\"_blank\">Forrester Total Economic Impact study<\/a> found a payback period of less than 4 months. Whether you\u2019re tracking campaign performance with an <a href=\"https:\/\/monday.com\/templates\/expense-tracking\" target=\"_blank\">expense tracking template<\/a> or monitoring departmental budgets with a <a href=\"https:\/\/monday.com\/templates\/budget-tracker\" target=\"_blank\">budget tracker template<\/a>, the platform keeps every number current without the manual overhead.<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added a CTA button in the new position called for by the refreshed outline.\"><ins><a class=\"cta-button blue-button\" aria-label=\"\" href=\"https:\/\/auth.monday.com\/users\/sign_up_new\" target=\"_blank\"><\/a><\/ins><\/span><\/p>\n"}]},{"main_heading":"Track every dollar and measure what matters","content_block":[{"acf_fc_layout":"text","content":"<p>ROI is one of the most <span data-changeset=\"true\" data-reason=\"Replaced the older general conclusion with a stronger wrap-up that summarizes formulas, variations, and Excel steps from the refreshed article.\"><del>fundamental business metrics out there. Why? Because it\u2019s simple and super straightforward. You don\u2019t have to be a professional financial analyst to work out your team\u2019s ROI on a project, and it\u2019s a decent gauge of an investment\u2019s profitability that you can <a href=\"https:\/\/monday.com\/blog\/project-management\/communications-plan-template\/\" target=\"_blank\">easily communicate<\/a> to other stakeholders. More importantly, ROI can tell you a net gain or loss.<\/del><ins>essential metrics in business \u2014 and now you have the formulas, variations, and step-by-step instructions to calculate it confidently in Excel. From basic net profit calculations to annualized returns and dynamic spreadsheet features, you\u2019re equipped to evaluate any investment and present the numbers that drive decisions.<\/ins><\/span><\/p>\n<p><span data-changeset=\"true\" data-reason=\"Removed a repetitive paragraph because the new conclusion already explains how to interpret positive and negative ROI.\"><del>If your ROI is positive, it means your investment was probably worthwhile. If your ROI is negative, it means there\u2019s likely some room for improvement. From there, your team can brainstorm what efficiencies could be made or where costs could be shaved.<\/del><\/span><\/p>\n<p>That<span data-changeset=\"true\" data-reason=\"Replaced the old generic Excel endorsement with a conclusion that explains when teams outgrow spreadsheets and why the platform helps.\"><del>\u2019s why it makes sense to use an ROI formula in Excel. Excel\u2019s calculator doesn\u2019t lie, and the formulas you enter automatically turn your data into ratios or percentages that will better inform your business choices<\/del><ins>\u00a0said, Excel has a ceiling. When your team is tracking ROI across dozens of projects, campaigns, and departments, a connected platform keeps everything accurate and accessible in real time. monday AI Work Platform brings your ROI formula, financial data, and stakeholder reporting into one workspace \u2014 with live dashboards, automated recalculations, and AI-powered insights that replace the manual spreadsheet cycle entirely<\/ins><\/span>.<\/p>\n<p><span data-changeset=\"true\" data-reason=\"Added a CTA button in the new position called for by the refreshed outline.\"><ins><a class=\"cta-button blue-button\" aria-label=\"\" href=\"https:\/\/auth.monday.com\/users\/sign_up_new\" target=\"_blank\"><\/a><\/ins><\/span><\/p>\n"}]},{"main_heading":"","content_block":[{"acf_fc_layout":"text","content":"<div class=\"accordion faq\" id=\"faq-faqs\">\n  <h2 class=\"accordion__heading section-title text-left\">FAQs<\/h2>\n    <div class=\"accordion__item\">\n    <a class=\"accordion__button d-block\" data-toggle=\"collapse\" data-parent=\"#faq-faqs\" href=\"#q-faqs-1\"\n      aria-expanded=\"false\">\n      <h3 class=\"accordion__question\">What is the formula for calculating ROI?        <svg class=\"angle-arrow angle-arrow--down\" width=\"32\" height=\"32\" viewBox=\"0 0 32 32\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n          <path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M16.5303 20.8839C16.2374 21.1768 15.7626 21.1768 15.4697 20.8839L7.82318 13.2374C7.53029 12.9445 7.53029 12.4697 7.82318 12.1768L8.17674 11.8232C8.46963 11.5303 8.9445 11.5303 9.2374 11.8232L16 18.5858L22.7626 11.8232C23.0555 11.5303 23.5303 11.5303 23.8232 11.8232L24.1768 12.1768C24.4697 12.4697 24.4697 12.9445 24.1768 13.2374L16.5303 20.8839Z\" fill=\"black\"\/>\n        <\/svg>\n      <\/h3>\n    <\/a>\n    <div id=\"q-faqs-1\" class=\"accordion__answer collapse collapse--md\" data-parent=\"#faq-faqs\">\n      <p><span data-changeset=\"true\" data-reason=\"Added a direct FAQ answer with the standard ROI formula for quick-reference readers.\"><del>A potential issue with calculating ROI is that it doesn\u2019t totally eradicate all risk or uncertainty. But to make sure you\u2019re getting all your calculations spot-on, you\u2019re going to want to remove as much human error as possible<\/del><ins>The formula for calculating ROI is (Net Profit \/ Cost of Investment) x 100. This gives you a percentage that shows how much return you earned relative to what you spent<\/ins><\/span>.<\/p>\n    <\/div>\n  <\/div>\n    <div class=\"accordion__item\">\n    <a class=\"accordion__button d-block\" data-toggle=\"collapse\" data-parent=\"#faq-faqs\" href=\"#q-faqs-2\"\n      aria-expanded=\"false\">\n      <h3 class=\"accordion__question\">What is a good ROI percentage?        <svg class=\"angle-arrow angle-arrow--down\" width=\"32\" height=\"32\" viewBox=\"0 0 32 32\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n          <path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M16.5303 20.8839C16.2374 21.1768 15.7626 21.1768 15.4697 20.8839L7.82318 13.2374C7.53029 12.9445 7.53029 12.4697 7.82318 12.1768L8.17674 11.8232C8.46963 11.5303 8.9445 11.5303 9.2374 11.8232L16 18.5858L22.7626 11.8232C23.0555 11.5303 23.5303 11.5303 23.8232 11.8232L24.1768 12.1768C24.4697 12.4697 24.4697 12.9445 24.1768 13.2374L16.5303 20.8839Z\" fill=\"black\"\/>\n        <\/svg>\n      <\/h3>\n    <\/a>\n    <div id=\"q-faqs-2\" class=\"accordion__answer collapse collapse--md\" data-parent=\"#faq-faqs\">\n      <p><span data-changeset=\"true\" data-reason=\"Added a concise benchmark-based FAQ answer for readers seeking a quick definition of good ROI.\"><ins>A good ROI percentage depends on the investment type and industry. For stock market investments, 7-10% annually is a common benchmark, while marketing campaigns often target a 5:1 return ratio (500% ROI).<\/ins><\/span><\/p>\n    <\/div>\n  <\/div>\n    <div class=\"accordion__item\">\n    <a class=\"accordion__button d-block\" data-toggle=\"collapse\" data-parent=\"#faq-faqs\" href=\"#q-faqs-3\"\n      aria-expanded=\"false\">\n      <h3 class=\"accordion__question\">How do you calculate a 10% ROI?        <svg class=\"angle-arrow angle-arrow--down\" width=\"32\" height=\"32\" viewBox=\"0 0 32 32\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n          <path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M16.5303 20.8839C16.2374 21.1768 15.7626 21.1768 15.4697 20.8839L7.82318 13.2374C7.53029 12.9445 7.53029 12.4697 7.82318 12.1768L8.17674 11.8232C8.46963 11.5303 8.9445 11.5303 9.2374 11.8232L16 18.5858L22.7626 11.8232C23.0555 11.5303 23.5303 11.5303 23.8232 11.8232L24.1768 12.1768C24.4697 12.4697 24.4697 12.9445 24.1768 13.2374L16.5303 20.8839Z\" fill=\"black\"\/>\n        <\/svg>\n      <\/h3>\n    <\/a>\n    <div id=\"q-faqs-3\" class=\"accordion__answer collapse collapse--md\" data-parent=\"#faq-faqs\">\n      <p><span data-changeset=\"true\" data-reason=\"Added a direct 10 percent ROI example so readers can translate the formula into a target return.\"><ins>To calculate a 10% ROI, you need a net profit that equals 10% of your total investment cost. For a $50,000 investment, that means earning $5,000 in net profit \u2014 so your total return would need to reach $55,000.<\/ins><\/span><\/p>\n    <\/div>\n  <\/div>\n    <div class=\"accordion__item\">\n    <a class=\"accordion__button d-block\" data-toggle=\"collapse\" data-parent=\"#faq-faqs\" href=\"#q-faqs-4\"\n      aria-expanded=\"false\">\n      <h3 class=\"accordion__question\">What is the difference between ROI and annualized ROI?        <svg class=\"angle-arrow angle-arrow--down\" width=\"32\" height=\"32\" viewBox=\"0 0 32 32\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n          <path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M16.5303 20.8839C16.2374 21.1768 15.7626 21.1768 15.4697 20.8839L7.82318 13.2374C7.53029 12.9445 7.53029 12.4697 7.82318 12.1768L8.17674 11.8232C8.46963 11.5303 8.9445 11.5303 9.2374 11.8232L16 18.5858L22.7626 11.8232C23.0555 11.5303 23.5303 11.5303 23.8232 11.8232L24.1768 12.1768C24.4697 12.4697 24.4697 12.9445 24.1768 13.2374L16.5303 20.8839Z\" fill=\"black\"\/>\n        <\/svg>\n      <\/h3>\n    <\/a>\n    <div id=\"q-faqs-4\" class=\"accordion__answer collapse collapse--md\" data-parent=\"#faq-faqs\">\n      <p><span data-changeset=\"true\" data-reason=\"Added a concise explanation of the difference between ROI and annualized ROI for quick scanning.\"><ins>Standard ROI measures total return regardless of time period, while annualized ROI adjusts the return to reflect a per-year rate. Annualized ROI is more useful when comparing investments held for different durations because it normalizes the time factor.<\/ins><\/span><\/p>\n    <\/div>\n  <\/div>\n    <div class=\"accordion__item\">\n    <a class=\"accordion__button d-block\" data-toggle=\"collapse\" data-parent=\"#faq-faqs\" href=\"#q-faqs-5\"\n      aria-expanded=\"false\">\n      <h3 class=\"accordion__question\">Does ROI account for the time value of money?        <svg class=\"angle-arrow angle-arrow--down\" width=\"32\" height=\"32\" viewBox=\"0 0 32 32\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n          <path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M16.5303 20.8839C16.2374 21.1768 15.7626 21.1768 15.4697 20.8839L7.82318 13.2374C7.53029 12.9445 7.53029 12.4697 7.82318 12.1768L8.17674 11.8232C8.46963 11.5303 8.9445 11.5303 9.2374 11.8232L16 18.5858L22.7626 11.8232C23.0555 11.5303 23.5303 11.5303 23.8232 11.8232L24.1768 12.1768C24.4697 12.4697 24.4697 12.9445 24.1768 13.2374L16.5303 20.8839Z\" fill=\"black\"\/>\n        <\/svg>\n      <\/h3>\n    <\/a>\n    <div id=\"q-faqs-5\" class=\"accordion__answer collapse collapse--md\" data-parent=\"#faq-faqs\">\n      <p><span data-changeset=\"true\" data-reason=\"Replaced a broad calculator explanation with a direct FAQ answer clarifying that basic ROI does not account for the time value of money.\"><del>Calculating ROI in Excel is simple. Deciding which ROI calculator to use is a little bit more difficult. Excel\u2019s ROI formula calculator is essentially a system of formulas you can use to figure out a range of ROI calculations \u2014 from return on equity (ROE) and internal rate of return (IRR), to annualized ROI and return on assets<\/del><ins>No, the basic ROI formula does not account for the time value of money. It treats every dollar the same regardless of when it was earned. For time-adjusted returns, use annualized ROI or net present value (NPV) instead<\/ins><\/span>.<\/p>\n    <\/div>\n  <\/div>\n    <div class=\"accordion__item\">\n    <a class=\"accordion__button d-block\" data-toggle=\"collapse\" data-parent=\"#faq-faqs\" href=\"#q-faqs-6\"\n      aria-expanded=\"false\">\n      <h3 class=\"accordion__question\">Expense Tracking TemplateWhat Excel functions are used for ROI calculations?        <svg class=\"angle-arrow angle-arrow--down\" width=\"32\" height=\"32\" viewBox=\"0 0 32 32\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n          <path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M16.5303 20.8839C16.2374 21.1768 15.7626 21.1768 15.4697 20.8839L7.82318 13.2374C7.53029 12.9445 7.53029 12.4697 7.82318 12.1768L8.17674 11.8232C8.46963 11.5303 8.9445 11.5303 9.2374 11.8232L16 18.5858L22.7626 11.8232C23.0555 11.5303 23.5303 11.5303 23.8232 11.8232L24.1768 12.1768C24.4697 12.4697 24.4697 12.9445 24.1768 13.2374L16.5303 20.8839Z\" fill=\"black\"\/>\n        <\/svg>\n      <\/h3>\n    <\/a>\n    <div id=\"q-faqs-6\" class=\"accordion__answer collapse collapse--md\" data-parent=\"#faq-faqs\">\n      <p><span data-changeset=\"true\" data-reason=\"Replaced template promotion copy with a practical FAQ answer about Excel functions used for ROI.\"><del>Want to get more proactive about your finances? Check out our <a href=\"https:\/\/monday.com\/templates\/expense-tracking\" target=\"_blank\">Expense Tracking Template<\/a> . This dynamic template offers teams a flexible bird\u2019s eye view of every aspect of their expenses and outgoings<\/del><ins>The most common Excel functions for ROI calculations are basic arithmetic division (=B2\/B3), SUM for totaling costs and returns, and the RATE function for annualized return calculations<\/ins><\/span>. You can also use <span data-changeset=\"true\" data-reason=\"Swapped a vague template claim for a specific note about IF functions so the content is more instructional.\"><del>it to forecast where your current financial path is going to take you in the future<\/del><ins>IF functions to flag investments that meet a target ROI threshold<\/ins><\/span>.<\/p>\n    <\/div>\n  <\/div>\n    <div class=\"accordion__item\">\n    <a class=\"accordion__button d-block\" data-toggle=\"collapse\" data-parent=\"#faq-faqs\" href=\"#q-faqs-7\"\n      aria-expanded=\"false\">\n      <h3 class=\"accordion__question\">Budget Tracking TemplateCan monday AI Work Platform replace Excel for ROI tracking?        <svg class=\"angle-arrow angle-arrow--down\" width=\"32\" height=\"32\" viewBox=\"0 0 32 32\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n          <path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M16.5303 20.8839C16.2374 21.1768 15.7626 21.1768 15.4697 20.8839L7.82318 13.2374C7.53029 12.9445 7.53029 12.4697 7.82318 12.1768L8.17674 11.8232C8.46963 11.5303 8.9445 11.5303 9.2374 11.8232L16 18.5858L22.7626 11.8232C23.0555 11.5303 23.5303 11.5303 23.8232 11.8232L24.1768 12.1768C24.4697 12.4697 24.4697 12.9445 24.1768 13.2374L16.5303 20.8839Z\" fill=\"black\"\/>\n        <\/svg>\n      <\/h3>\n    <\/a>\n    <div id=\"q-faqs-7\" class=\"accordion__answer collapse collapse--md\" data-parent=\"#faq-faqs\">\n      <p><span data-changeset=\"true\" data-reason=\"Replaced template promotion copy with a concise FAQ answer about how monday AI Work Platform can replace manual Excel tracking.\"><del>monday.com\u2019s <a href=\"https:\/\/monday.com\/templates\/budget-tracker\" target=\"_blank\">Budget Tracker Template<\/a> offers you the chance to get a crystal-clear picture of how much your team is spending and then look at how that spending compares against what you\u2019d originally budgeted. This template is 100% customizable, which means you can reorder line items, tag expenses, and create your own unique spending plan to keep things on track<\/del><ins>Yes, the platform replaces manual Excel ROI tracking with formula columns that auto-calculate, dashboards that display live metrics, and automations that update figures whenever project data changes. Teams report an average 8x ROI from using monday AI Work Platform<\/ins><\/span>.<\/p>\n    <\/div>\n  <\/div>\n  <script type='application\/ld+json'>{\n    \"@context\": \"https:\\\/\\\/schema.org\",\n    \"@type\": \"FAQPage\",\n    \"mainEntity\": [\n        {\n            \"@type\": \"Question\",\n            \"name\": \"What is the formula for calculating ROI?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p><span data-changeset=\\\"true\\\" data-reason=\\\"Added a direct FAQ answer with the standard ROI formula for quick-reference readers.\\\"><del>A potential issue with calculating ROI is that it doesn\\u2019t totally eradicate all risk or uncertainty. But to make sure you\\u2019re getting all your calculations spot-on, you\\u2019re going to want to remove as much human error as possible<\\\/del><ins>The formula for calculating ROI is (Net Profit \\\/ Cost of Investment) x 100. This gives you a percentage that shows how much return you earned relative to what you spent<\\\/ins><\\\/span>.<\\\/p>\\n\"\n            }\n        },\n        {\n            \"@type\": \"Question\",\n            \"name\": \"What is a good ROI percentage?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p><span data-changeset=\\\"true\\\" data-reason=\\\"Added a concise benchmark-based FAQ answer for readers seeking a quick definition of good ROI.\\\"><ins>A good ROI percentage depends on the investment type and industry. For stock market investments, 7-10% annually is a common benchmark, while marketing campaigns often target a 5:1 return ratio (500% ROI).<\\\/ins><\\\/span><\\\/p>\\n\"\n            }\n        },\n        {\n            \"@type\": \"Question\",\n            \"name\": \"How do you calculate a 10% ROI?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p><span data-changeset=\\\"true\\\" data-reason=\\\"Added a direct 10 percent ROI example so readers can translate the formula into a target return.\\\"><ins>To calculate a 10% ROI, you need a net profit that equals 10% of your total investment cost. For a $50,000 investment, that means earning $5,000 in net profit \\u2014 so your total return would need to reach $55,000.<\\\/ins><\\\/span><\\\/p>\\n\"\n            }\n        },\n        {\n            \"@type\": \"Question\",\n            \"name\": \"What is the difference between ROI and annualized ROI?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p><span data-changeset=\\\"true\\\" data-reason=\\\"Added a concise explanation of the difference between ROI and annualized ROI for quick scanning.\\\"><ins>Standard ROI measures total return regardless of time period, while annualized ROI adjusts the return to reflect a per-year rate. Annualized ROI is more useful when comparing investments held for different durations because it normalizes the time factor.<\\\/ins><\\\/span><\\\/p>\\n\"\n            }\n        },\n        {\n            \"@type\": \"Question\",\n            \"name\": \"Does ROI account for the time value of money?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p><span data-changeset=\\\"true\\\" data-reason=\\\"Replaced a broad calculator explanation with a direct FAQ answer clarifying that basic ROI does not account for the time value of money.\\\"><del>Calculating ROI in Excel is simple. Deciding which ROI calculator to use is a little bit more difficult. Excel\\u2019s ROI formula calculator is essentially a system of formulas you can use to figure out a range of ROI calculations \\u2014 from return on equity (ROE) and internal rate of return (IRR), to annualized ROI and return on assets<\\\/del><ins>No, the basic ROI formula does not account for the time value of money. It treats every dollar the same regardless of when it was earned. For time-adjusted returns, use annualized ROI or net present value (NPV) instead<\\\/ins><\\\/span>.<\\\/p>\\n\"\n            }\n        },\n        {\n            \"@type\": \"Question\",\n            \"name\": \"Expense Tracking TemplateWhat Excel functions are used for ROI calculations?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p><span data-changeset=\\\"true\\\" data-reason=\\\"Replaced template promotion copy with a practical FAQ answer about Excel functions used for ROI.\\\"><del>Want to get more proactive about your finances? Check out our <a href=\\\"https:\\\/\\\/monday.com\\\/templates\\\/expense-tracking\\\" target=\\\"_blank\\\">Expense Tracking Template<\\\/a> . This dynamic template offers teams a flexible bird\\u2019s eye view of every aspect of their expenses and outgoings<\\\/del><ins>The most common Excel functions for ROI calculations are basic arithmetic division (=B2\\\/B3), SUM for totaling costs and returns, and the RATE function for annualized return calculations<\\\/ins><\\\/span>. You can also use <span data-changeset=\\\"true\\\" data-reason=\\\"Swapped a vague template claim for a specific note about IF functions so the content is more instructional.\\\"><del>it to forecast where your current financial path is going to take you in the future<\\\/del><ins>IF functions to flag investments that meet a target ROI threshold<\\\/ins><\\\/span>.<\\\/p>\\n\"\n            }\n        },\n        {\n            \"@type\": \"Question\",\n            \"name\": \"Budget Tracking TemplateCan monday AI Work Platform replace Excel for ROI tracking?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p><span data-changeset=\\\"true\\\" data-reason=\\\"Replaced template promotion copy with a concise FAQ answer about how monday AI Work Platform can replace manual Excel tracking.\\\"><del>monday.com\\u2019s <a href=\\\"https:\\\/\\\/monday.com\\\/templates\\\/budget-tracker\\\" target=\\\"_blank\\\">Budget Tracker Template<\\\/a> offers you the chance to get a crystal-clear picture of how much your team is spending and then look at how that spending compares against what you\\u2019d originally budgeted. This template is 100% customizable, which means you can reorder line items, tag expenses, and create your own unique spending plan to keep things on track<\\\/del><ins>Yes, the platform replaces manual Excel ROI tracking with formula columns that auto-calculate, dashboards that display live metrics, and automations that update figures whenever project data changes. Teams report an average 8x ROI from using monday AI Work Platform<\\\/ins><\\\/span>.<\\\/p>\\n\"\n            }\n        }\n    ]\n}<\/script><\/div>\n\n"}]}]}],"show_sidebar_sticky_banner":false},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Howdo you use the ROI formula on Excel?to calculate ROI in Excel (with formulas and examples) | monday.com Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/monday.com\/blog\/task-management\/roi-formula-excel\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Howdo you use the ROI formula on Excel?to calculate ROI in Excel (with formulas and examples)\" \/>\n<meta property=\"og:description\" content=\"Staying on top of your company\u2019s finances is absolutely critical. 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