Identify the total cost of the investment (initial purchase price, setup fees, implementation costs, ongoing costs during the measurement period)
Identify the total benefits from the investment during the same period (revenue increases, cost savings, additional earnings, resale value, other returns)
Calculate net profit: net profit = total benefits − total costs
Calculate ROI: ROI = (net profit ÷ total costs) × 100%
If using a cash-flow period, ensure benefits and costs come from the same time window
If using multiple cash flows, compute ROI using total net benefit over total invested cost: ROI = (Σ benefits − Σ costs) ÷ Σ costs × 100%
If ROI is negative, the investment lost value over the period
Report ROI as a percentage (and optionally include the time period used)