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How to Calculate ROI for Successful Business plan

You’ve probably heard the old saying about “throwing ideas against the wall until you find something that sticks.” Another way to state this is to try a dozen ways to get things done, because one of them is bound to work. After all, succeeding in business or investing is just a numbers game, right?

There is some truth to this, as long as you have enough patience to try and try again until you find something that gives you the result you’re after.

A Better Way

You can avoid much of the frustration, loss of time, and expense, however, if you use the right business tools from the start. You don’t have to reinvent the process from the beginning. This applies to both building a company that represents your passion in life, as well as to investing money wisely to the get the best return available.

Business analysts and serious investors use specific tools to get the information they need. You can discover the software tools you need, as you go, of course. But, you might want to start with one or two of those tools that have been effective for others, such as learning how to calculate return on investment (ROI). Helpful tools can change and improve over time, depending on available technology and current business trends. But ROI is one of the basic building blocks of investing, whether you’re putting your money into an entrepreneurial idea or working with a financial adviser to choose which stocks, bonds, and other instruments to invest in.

Start Here

When you begin to develop the skills necessary to succeed in the investment “game” or in business, make sure part of your personality is dedicated to being an analyst. Learn the skills you need, such as problem solving, communication, and, of course, analyze. One of the key skills you should develop is this: train yourself to calculate return on investment.

Fortunately, this is much easier than it sounds, especially if you’re just starting as an investor or business person. There are sites you can visit that provide easy-to-use calculator software, often right on the front page of the site. At most of these calculator sites, you can “plug in” the numbers and see the result immediately.

For example, suppose you’ve put in $1,000 of your own money, and in just a bit less than five years you are able to put $2,000 in your bank account. In basic terms, your return on investment is 100%. Divide that by the period of time the money was invested and you can also have an annualized return – a good figure to have.


You will need to develop other skills as you move through your investing or business career. No single tool will always give you the information you need. But, you’d be wise to take advantage of the simple and effective ROI calculation tools available. This is certainly a great way to build the solid foundation you’ll need in the future. Measuring your results is a key to financial success. Use an ROI calculator to get one of those accurate measurements.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.

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