Ad campaign, new truck, a software subscription, a hire: every dollar you put into the business should earn its keep. Enter what you spent and what it brought back to see the return as a clean percentage, the net gain in dollars, and an annualized rate so you can compare a six-month bet to a three-year one. Runs in your browser.
Return on investment is the net gain divided by what you put in, as a percentage. Spend 1,000 on a local ad campaign, book 4,000 in work from it, and you netted 3,000 on 1,000, a 300 percent ROI. The formula is simple; the discipline is in what you feed it. Revenue overstates the win because the jobs cost money to do. If you can, enter the gross profit the spend produced, not the top-line revenue, and the number starts telling you the truth.
A raw ROI percentage hides time. Making 40 percent in four months and 40 percent in four years look identical on the surface, but one is a far better use of money. Annualizing restates the return as a yearly rate so you can line up a quick marketing test against a truck that pays off over years. Enter the time period and this tool does it. For big purchases, a modest annualized ROI that repeats reliably often beats a flashy one-time number.
Contractors chase ROI on ads and equipment, but the cheapest return is often internal: invoicing the day of the job instead of the end of the week, and getting paid by card instead of chasing checks. That is dollars you already earned, arriving sooner, at no new spend. FieldForge is built for exactly that, say the job and the invoice goes out with a payment link before you leave the driveway. Model your growth with the revenue growth calculator once the cash is moving.
Net gain divided by amount invested, times 100. Net gain is return minus cost.
Many contractors target 3 to 5 times spend, since not every lead closes. Judge on profit, not revenue.
Yes. If the return is less than what you spent, ROI is negative, the spend lost money.