If you invest $---- (amount spent) and your total revenue
is $---- (amount returned), you will have a profit/loss
of
$----, and your ROI will be ----%

### What is ROI?

Return on Investment (ROI) is simply a way of determining whether or not an investment is
profitable.

Let’s expand on the example described here. If Campaign A costs $20,000, generates 40
customers who, in turn, bring about $34,000 of revenues in total, then the ROI of Campaign A
is +70%. This is a positive ROI:

34000 - 20000 = 14000

(14000 / 20000) x 100 = 70%.

In this case, you’ve spent $20,000 but made a profit of $14,000.

Now, let’s assume that Campaign B costs $1,000, generates 1 customer who brings $300 in
revenues. In the case of Campaign B, the ROI is -70%. This is a negative ROI:

300 - 1000 = -700

(-700 / 1000) x 100 = (-70%)

In this case, you’ve spent $1,000 but also generated a loss of $700.