Whether it is a private investment or marketing ROI related to a company or business, staying in control of data like revenue generated and company cash flow is crucial. This works for any investment or business, regardless of type or origin.

Many business owners use the ROI metric to better understand the profitability of these investments and the total cost of these operations. It is a straightforward calculation that can tell how profitable and worthwhile an investment is.

Everything must be considered to calculate a good ROI, from the initial investment to the capital gains. Although there are different ways to calculate ROI, we will show you a simple ROI formula that can be used for any business or capital gain method.

Follow each step carefully to guarantee the best results when measuring ROI. Before we start learning how to make an ROI calculator template, let’s understand some basic concepts:

Before measuring ROI, you need to understand what it is and how it impacts your financial gain. The Return on Investment (ROI) is a performance metric used by all business types and physical persons to measure how profitable and efficient an investment can be.

Many business owners also calculate the ROI of different investments and compare them to see which is better. A good ROI percentage is crucial to make every dollar invested worth it.

It is essential to say that calculating the return on investment is not something you do only once. You can do it multiple times with the passing of months to compare how much profit you get from the same investment.

It is important to do it because these values can vary widely depending on your action and other factors like money spent.

Along with being one of the most fundamental metrics in business and net profit, many other factors make a good ROI calculator vital. The first one is because, although the ROI equation is one of the most straightforward processes, it is a powerful tool that can clarify many aspects of the most suitable investment.

The other reason the ROI formula is so famous for all businesses is that anyone can do the calculation. This makes it distinct from most methods that need special knowledge to make some of the calculations.

Another reason for making an ROI calculator template is because this document can gather all the essential information like net income and dollars invested. With this data, you can easily make a presentation for your stakeholders or clients.

The main objective of the return on investment spreadsheet is to calculate net gain or loss. Positive ROIs are synonymous with worthwhile investments.

On the other hand, negative results mean that the return on investment is not going well. But the ROI calculator is not restricted to measuring annualized return or just net income. This tool can have tons of different uses.

Although Return on Investment (ROI) is a specific calculation, different types of ROI can be used. Each one has its own characteristics and objectives.

You must understand their differences and how to calculate them correctly. Here are the most common types of Return on Investment and how to calculate them:

Capital Gain

The ROI formula for capital gain is among the most used ones between investors and business owners. Depending on the result, it will show your Return on Investment as a financial gain or loss.

The base for this calculation is your initial investment. With this, the only two pieces of information you will need to do this calculation are your capital gain and the initial value applied.

After gathering these two numbers, all that you need to do is:

Capital Gain ÷ Initial Value Applied

 Simple as that, you can calculate ROI for capital gain.

Net Income

The net income method is definitely the most used one. It is one of the easiest calculations and can quickly be done with the help of an Excel spreadsheet to avoid mistakes.

For calculating the net income, you will also need the first investment value to calculate the net income. The formula is the net income you got divided by the first investment you made.

The more positive the results, the better the investment. On the other hand, a negative number means money loss.

Annualized Return on Investment

This is also a very simple ROI system. The annualized ROI is almost identical to the capital gain system. The only difference is that, as the name suggests, the annualized ROI considers the original cost over the return on investment generated in the time period of one year.

Most investors consider this period of time, but you can also calculate the result for more than just one year. In this case, the formula for calculating ROI is: ROI = (Ending value / Starting value) ^ (1 / Number of years) -1.

It is also very common to calculate ROI regarding marketing costs and strategies. The main objective of marketing content ROI is to analyze the different strategies used and the return on investment regarding each one.

With this tool, you can clearly quantify results to address your company’s marketing campaigns better. That said, marketing professionals can set more realistic goals and manage the results of each campaign and its marketing costs.

The method for calculating marketing ROI is the same as in almost any other kind of ROI formula. Your primary data will be the total cost for the marketing campaigns.

Along with this information, you’ll also need to provide numbers for your returns, whether in money or benefits. Note that these benefits must also be transformed into cash, with the stipulated earnings involving them.

After collecting all the necessary information, you just need to apply the ROI formula. The marketing ROI is calculated by picking the value regarding returns and dividing it by the cost of the campaign.

Marketing ROI is a pretty straightforward process, but just like any good ROI, it can benefit your business in many ways. With these results, you can better plan your next campaigns and marketing efforts.

Social Media ROI

Just like calculating marketing ROI, you can do the same for social media. From new followers to website visits, the ROI formula can also help with these tasks.

Calculating ROI, in this case, is exactly the same as marketing ROI. You need to calculate the return on investment by dividing the values returned by the total cost of your social media strategies.

The more resources and benefits you are able to gather, the better it will be. All the information that is not directly listed as money must be converted.

Whether your client's conversion rates or partnerships, all these factors must have a value assigned to them. This will give you a more precise return on investment.

With this, you can see if the adopted strategies are generating a benefit for the company. After analyzing the data from the ROI, you’ll be able to determine which actions really were a success.

How to Increase ROI

When calculating annualized ROI or any other situation, you want the highest number possible in your results. Regardless of your business type, a good investment is the key to good returns and a successful company.

Investing in the right techniques and strategies is the best way to increase your ROI values. You must prioritize actions that can undoubtedly reward you with a good return on investment.

One of the best ways to do this is through solid strategies that are proven to be effective. Some of the most famous examples are email marketing and Search Engine Optimization (SEO).

If you are doing marketing ROI, you should consider investing in Google Ads and other pay-per-click strategies. However, the best way to increase your ROI is by analyzing all the already done investments and tracking their results.

This way, you can see which actions have a positive result. It will guarantee that you get the best results from the investments, benefiting you and your business.

When creating a template for calculating your ROI, some categories and items are vital for your spreadsheet to work correctly. Be sure to analyze each of the following items to better understand your investments and which ones are worth it for your business.

Remember that your template must be as clear and precise as possible to work. Here are the main categories to include in your document:

Total Original Investment

One key item for your template is the total value invested in your marketing, social media, or anything else. They will guide you through calculating all your investments and allow you to see if the returns compensate them clearly.

Remember that investment is not restricted to money. The structure provided and other elements must also be considered.

Thus, you need to assign a value to each of these items. It is the same process done in social media and marketing ROI.

Average Revenue and Profit Per Sale

Registering the revenue and profit generated by each product or service sold is also recommended. This way, you have better control of the impacts of your investments.

Not only that but in some cases, these numbers can get mixed with other values, generating data that is not precise. Taking note of these values will help you have a better-looking template that is easier to read and understand.

Number of Leads Generated

When making investment decisions, one of the most common types of goals is to increase lead generation. Keeping a register of the number of leads generated is an excellent way of analyzing the reflections and results of your investment.

A low number of leads means the actions didn’t have the desired result. Then, the company owner can start thinking of new strategies to achieve this goal.

Cost Per Lead

After taking note of the information regarding leads generated, your ROI document should also include the average cost for each lead. This way, you will have the approximate value that was spent for gathering new customers.

When doing recurrent ROIs, you can track this data to see if this value increases or decreases over time. This kind of analysis is perfect for generating new insights.

Cost Per Sale

Cost per sale is an essential part of your documentation. It may not go straight into the ROI formula, but it also impacts different aspects of the company.

With this register, you can observe if your investments were able to reduce this cost or increase it. Analyzing this data is fundamental to determining what to do next and which kind of investment is more suitable for your context.

Cash Flow Return

In some kinds of ROI, keeping track of the cash flow is also important, and it can be a good thing to add this information to the ROI template. Having better control of these values impacts all aspects and areas of a business.

Although it is more common to see this in cash flow ROIs, they are not limited to just this kind of template. If you think it suits your situation, feel free to add it.

Operational Cost

Another often included category is the operational cost. This cost can regard the entire business or a specific sector. It will depend on the type of investment you are making.

When building an ROI calculator, having this kind of data can help when comparing the impact of that investment in the operational process.

Decreasing the operational cost can be considered a benefit and should be counted when calculating the return on investment. The same works for an increased operational cost. Having this downside should also be considered when calculating the ROI.

When it comes to creating templates for calculating ROI, there are tons of programs available. From known options to specialized software, each one with its characteristics and features.

Among all the options available, we highly recommend using Microsoft Excel for this task. Along with having the best tool set available, Excel is also an industry standard. This way, you will have one program capable of doing almost all the necessary documentation for your company.

If you don’t have a Microsoft Office activation key, you can find Microsoft Office 2021 Professional Plus Key Retail Global at RoyalCDKeys for a considerably lower price. This way, you can access all the tools and features you need and save money.

If you don’t want to create your template from scratch, there is no problem. Here are some examples that you can download and use.

Be sure to choose a template that truly fits your needs and expectations. Moreover, you can use Excel to edit them and ensure you have the perfect spreadsheet for your ROI tasks.

Template #1

Cash flow ROI. Spreadsheet template focused on calculating ROI for investments directly related to cash flow.

Get this template

Template #2

Marketing ROI spreadsheet. Template dedicated to calculating ROI related to marketing campaigns and strategies.

Get this template

Template #3

Website ROI document. Template indicated for ROI calculations regarding website investments and social media actions.

Get this template

Template #4

Cost Avoidance ROI. Spreadsheet focused on cost avoidance calculation for all kinds of businesses.

Get this template

Template #5

Healthcare ROI. The document focused on calculating the ROI for healthcare investments.

Get this template

Template #6

Simple excel template for ROI. Can be used to calculate ROI in a simple way, regardless of the business type.

Get this template

Template #7

Lead marketing ROI document. Template dedicated to calculating return on investment for lead generation.

Get this template

Undoubtedly, ROI documents are vital for businesses of all kinds. They are essential in decision-making and communicating with key stakeholders about informed decisions.

When filling out this kind of document, you must be very careful. Each type of ROI spreadsheet will have a different calculation and focus.

Pay attention to every step and use Microsoft Excel to edit every detail. This way, you’ll end with a document that generates a positive impact.

Now that you know everything you need about ROI templates, it is time to start creating your spreadsheet. By following the steps and carefully filling out the fields, you’ll have a life-saving document showing you the best decisions to make.