| Metric | Scenario A | Scenario B | Scenario C |
|---|---|---|---|
| Name | |||
| Investment ($) | |||
| Revenue ($) | |||
| Months | |||
| Net Profit | - | - | - |
| ROI % | - | - | - |
| Monthly ROI | - | - | - |
| Break-Even | - | - | - |
Return on Investment (ROI) measures the profitability of an investment relative to its cost. For online sellers, ROI helps you understand whether your spending on ads, equipment, inventory, or tools is actually making you money. The formula is simple: ROI = (Net Profit / Total Investment) × 100.
For example, if you spend $200 on Etsy Ads and generate $600 in additional sales, your net profit from ads is $400 and your ROI is 200%. This means every dollar spent on ads returned $2 in profit. Tracking ROI helps you make data-driven decisions about where to invest your limited budget.
Use Simple Mode for quick ROI calculations when you know your total investment and total returns. Use Advanced Mode when you need to factor in recurring monthly costs, per-unit economics, and want to see break-even analysis and profit trends over time.
The Comparison Table lets you evaluate up to three scenarios side-by-side — perfect for deciding between different ad platforms, comparing investment options, or testing "what if" scenarios before committing real money.
ROI expectations vary by investment type. For paid advertising (Etsy Ads, Amazon PPC, Facebook Ads), a minimum ROI of 100% is a common target — meaning you earn at least $2 for every $1 spent. For equipment purchases like Cricut machines or printers, ROI builds gradually and may take 3-6 months to turn positive. For inventory investments, bulk buying at a discount can yield 30-60% improved margins compared to buying at retail cost.
Use our Break-Even Calculator to find exactly how many units you need to sell to recover your investment, and our Marketplace Fee Comparison tool to factor platform fees into your ROI calculations.