Investment Return Calculator
Model your investment outcomes: find projected returns, profits, and capital recovery time
Net Project Profit
$495 000
Payback Period
11 months
Return On Investments (ROI)
49.5%
Profitability Index (PI)
1.50x
Understanding Investment Return
Investment Return measures the profitability of a project or investment by comparing the net gains to the initial capital deployed.
Using this calculator, founders can see how much total profit the project generates over the timeline, how quickly the initial investment is recovered, and how efficiently resources are being used.
How the calculations work
Net Project Profit: The total profit generated by the project over the operating period after accounting for cost per item and monthly fixed operating costs. Calculated as: (Monthly Net Profit × Number of Operating Months) − Initial Investment Investment
Payback Period: The projected number of months from project start required to recover the initial investment. Calculated as: Initial Investment ÷ Monthly Net Profit + Pre-Operating Months
Return on Investment (ROI): Measures how efficiently the invested capital generates profit over the project timeline. Calculated as:
Net Project Profit ÷ Initial Investment
Net Project Profit ÷ Initial Investment
Profitability Index (PI): Indicates how much total value is generated for each dollar invested. Calculated as: (Initial Investment + Net Project Profit) ÷ Initial Investment. A PI greater than 1x means the project creates value beyond the capital invested.