Marketing campaign ROI
Measure whether a paid campaign, content investment, or event generated more revenue than it cost.
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ROI calculator
A free roi calculator for Indian merchants and businesses. Enter your figures for an instant breakdown with the full formula and assumptions.
ROI Calculator
Total cost of the investment, including setup and operational expenses.
Total revenue or proceeds received from the investment.
Time period over which the return was generated.
50%gain
Investment gain
Net profit: amount returned minus amount invested.
ROI
Return as a percentage of the original investment.
CAGR / Ann. ROI
Equivalent yearly return rate (same as CAGR for a single lump-sum investment).
Explore PayU for merchants
How merchants use this calculator
Three of the most common ways merchants put this calculator to work.
Payment gateway ROI
Compare the incremental revenue from improved checkout conversion against integration cost and MDR fees.
Product launch ROI
Assess whether a new product or SKU generated enough revenue to justify development and launch spend.
What you get with this calculator
Instant results as you type
Investment gain, total ROI, and annualised CAGR all calculate automatically. No submit button; results update in real time.
Preset scenarios included
Three realistic merchant scenarios (marketing campaigns, gateway switches, and product launches) with pre-filled numbers you can adjust to your own situation.
Loss scenarios handled clearly
If a campaign or investment returned less than its cost, the calculator surfaces the exact loss amount and CAGR alongside a clear loss indicator, no guesswork.
ROI calculation logic
ROI (%) = ((Amount Returned − Amount Invested) / Amount Invested) × 100
Annualised ROI = ((1 + ROI/100)^(1/years) − 1) × 100
ROI measures total return regardless of time. Annualised ROI normalises it to a per-year rate, making investments of different durations comparable.
Assumptions
- ROI assumes the full amount invested is deployed at once and the full return is received at the end of the period.
- The annualised ROI formula assumes compounding. Simple annualisation (ROI / years) will give a different, non-compounded figure.
- The calculator does not account for taxes on returns, inflation, or risk-adjusted returns.
- Negative ROI indicates the investment returned less than its cost.
How to use the calculator
1
Enter your figures
Fill in the fields above. Defaults are pre-filled with realistic figures so you can read a result straight away.
2
Read the result
The calculator returns the key output with a full breakdown. Every figure is an estimate based on the values you entered.
3
Understand what changes it
Adjust any input to see the result update. The formula section shows which variables have the largest impact.
Questions this calculator answers
What is a good ROI for a business investment?
There is no universal benchmark; acceptable ROI depends on the investment type, risk level, and time horizon. Marketing campaigns typically target 200–500% ROI. Capital equipment investments often target 15–30% annualised ROI. For payment infrastructure, a payback period of 3–12 months is common for mid-sized merchants. The key metric is comparing ROI against your cost of capital and industry norms, not a single generic threshold.
ROI vs CAGR vs Annualised ROI: what is the difference?
For a single lump-sum investment, CAGR (Compound Annual Growth Rate) and Annualised ROI are the same number. Both convert a total return into an equivalent yearly rate, making investments of different durations comparable. CAGR is the standard term used in Indian finance. ROI measures total return regardless of time; a 50% ROI over one year is very different from 50% over five years. When investments have multiple cash flows at different dates (such as staggered marketing spend), XIRR is more accurate than either.
Limitations of ROI every merchant should know
ROI does not account for investment risk, cash flow timing, or costs incurred during the investment period. Two investments can show identical ROI while one is far riskier. ROI also does not reflect taxes on returns, inflation, or opportunity cost. For high-value decisions such as gateway upgrades, product expansions, and inventory investments, supplement ROI with CAGR for time-adjusted comparisons and consider net margin impact alongside the percentage return.
ROI for payment gateway adoption
Merchants evaluating a payment gateway should model ROI across three dimensions: incremental revenue from higher payment success rates and lower cart abandonment; cost savings from lower MDR tiers at higher transaction volumes; and one-time integration and migration costs. Settlement speed also has an implicit ROI: faster access to funds reduces working capital requirements. Comparing gateways on total cost of ownership gives a more complete ROI picture than MDR alone.
Frequently asked questions
What does ROI mean in business?
ROI stands for Return on Investment. It measures how much profit or value you gained from an investment relative to what you spent. A 50% ROI means you earned ₹1.50 for every ₹1 invested.
How is ROI calculated?
ROI = ((Amount Returned − Amount Invested) / Amount Invested) × 100. A positive result means a profit; a negative result means a loss.
What is the difference between ROI and CAGR?
For a single lump-sum investment, CAGR and Annualised ROI are the same number; both convert total return into an equivalent yearly rate. CAGR is the standard Indian finance term. They diverge only when there are multiple cash flows at different dates, where XIRR becomes more appropriate.
Can ROI be negative? What does that mean?
Yes. A negative ROI means the investment returned less than it cost. For example, investing ₹1,00,000 and receiving back ₹75,000 gives a −25% ROI. The calculator flags this scenario clearly as a loss.
What is annualised ROI and why does it matter?
Annualised ROI converts the total return into an equivalent yearly rate, making it possible to compare investments that ran for different time periods. A 50% ROI over 2 years is not the same as 50% per year; annualised ROI makes that distinction visible.
How do I calculate ROI on a marketing campaign?
Subtract total campaign cost from the revenue attributable to the campaign, divide by the campaign cost, and multiply by 100. For digital campaigns, use attributed revenue from conversion tracking rather than total company revenue.
What is a realistic ROI for adopting a payment gateway?
It varies by business. Merchants typically look at incremental revenue from improved payment success rates, reduced cart abandonment, and new payment method coverage, minus gateway fees and integration costs. Payback periods of 3–12 months are common for mid-sized merchants.
What is a good ROI for a business investment?
There is no universal number. A marketing campaign might target 200–500% ROI, while capital equipment might target 15–30% annualised ROI. The right benchmark is your cost of capital and what comparable investments in your industry deliver.
Calculator outputs are estimates based on the values you enter. They are for planning and education purposes only and do not constitute financial, tax, or legal advice. Actual amounts may vary based on applicable regulations, your business category, lender terms, and individual circumstances.