How to calculate ROI in Excel
Formula (Excel and Google Sheets)
=(C2-B2)/B2Subtract the cost from the return and divide by the cost: =(C2-B2)/B2, formatted as a percentage.
- Result on the example
- one result per row in
D2, filled down toD5 - Works in
- Every current version
- Google Sheets
- Same formula
See it work
The formula is already in D2, filled down to D5. Change any input and the result updates, or edit the formula to experiment.
How it works
ROI is the gain as a share of what you spent. Search ads cost $12,000 and brought in $30,600, a gain of $18,600, which is 155% of the cost. A negative ROI, like the trade show's, means the money came back smaller than it went out.
=(C2-B2)/B2Result1.55
C2$30,600The value in C2.
B2$12,000The value in B2.
C2-B218600The - operator subtracts.
C2-B2)/B21.55The / operator divides.
In Google Sheets
The same formula works in Google Sheets: =(C2-B2)/B2. We ran it in Google Sheets mode on the same data and it returns the same results.
Other ways to do it
Each one was run on the same example sheet.
| Formula | Result | When to use it |
|---|---|---|
| =C2/B2-1 | 155.0%, 30.0%, 450.0%… | The same ratio in fewer characters. |
| =C2/B2 | 255.0%, 130.0%, 550.0%…Different result | Return on ad spend (ROAS) divides revenue by cost without subtracting it. ROAS: 2.55 for search ads, which reads as 255%. |
Common mistakes
- Use profit, not revenue, when the campaigns have different margins: revenue overstates the return.
- ROI ignores time: 50% over five years is much worse than 50% in one. Annualize it with
=(1+D2)^(1/years)-1.
Try it yourself
Same data, empty answer cell. Your formula is graded instantly, then re-checked on changed data, so a typed-in number won't pass.
Calculate ROI
D2, calculate the return on investment of each campaign (revenue against cost), and fill down to D5.Questions
How do I calculate the ROI of all campaigns together?
Use the totals, not the average of the percentages: =(SUM(C2:C5)-SUM(B2:B5))/SUM(B2:B5).
How do I calculate annualized ROI?
Spread it over the years held: =(1+D2)^(1/3)-1 for three years.
Checked by running on 2026-10-30: every formula and result on this page was calculated by the Spreadsheet Practice formula engine, in both Excel and Google Sheets modes.