Return on Investment Calculator

This return on investment calculator will help you to calculate return on investment for use in the Financial Projections Template and your business plan.

If you are seeking funding for your business by way of investment, it is likely that you will need to include an estimate of the return on investment (ROI) an investor can expect to make from their investment in your business plan. It is important to realize that investors might use the return on investment calculation to compare several different investments before deciding whether to invest or not.

The Excel ROI calculator, available for download below, helps a business calculate return on investment.

return on investment calculator

How to use the Return on Investment Calculator

To use the return on investment worksheet enter details relating to the investment and the exit valuation.


Firstly enter the following details in relation to the investment.

  1. The amount invested in the business.
  2. The percentage of the business equity purchased.
  3. The number of years after which the investor exits the business.

Value on Exit

Secondly enter the following details relating to the exit valuation

  1. The PE ratio for the business.
  2. The annual profits on which to base the valuation

Finally the worksheet provides the return on investment, annualized return on investment, multiple, and compound annual growth rate (CAGR).

Additionally our blog article on return on investment gives full details of how this return on investment calculator can be used.

Return on InvestmentĀ Calculator Download

The return on investment spreadsheet is available for download in Excel format by following the link below.

Notes and major health warnings
Users use this annual return on investment worksheet at their own risk. Consequently we make no warranty or representation as to its accuracy. In addition we are covered by the terms of our legal disclaimer, which you are deemed to have read. This is an example of an annual rate of ROI calculator that you might use when preparing a business plan. It is purely illustrative. We do not intend this template to reflect general standards or targets for any particular company or sector. If you do spot a mistake in the returns on investment template, please let us know and we will try to fix it.
Last modified November 17th, 2022 by Michael Brown

About the Author

Chartered accountant Michael Brown is the founder and CEO of Plan Projections. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.

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