This ROI analysis template is designed to systematically evaluate the return on investment for a specific project or investment. It guides you through detailing the total investment, analyzing revenue and costs, and calculating the net profit.
OBJECTIVE
Evaluate the return on investment (ROI) for a specific project or investment.
INVESTMENT DETAILS
Item 🗃️ | Description 📂 | Fill In 🗂️ |
|---|---|---|
Total Investment | The total amount of money invested. 💰 | $_________ |
Investment Period | Duration of the investment. ⏱️ | __ Years |
REVENUE COST ANALYSIS
Item 📒 | Description 📃 | Fill In 📋 |
|---|---|---|
Total Revenue 🖌️ | Total income generated. 💵 | $_________ |
Operating Costs 📊 | Expenses incurred during the period. 🫱🏻🫲🏽 | $_________ |
Net Profit 📈 | Total Revenue minus Operating Costs. 📌 | $_________ |
ROI CALCULATION
ROI FORMULA
ROI = (Net Profit / Total Investment) × 100
Fill in the values:
Net Profit: $_________
Total Investment: $_________
Calculate ROI: _________%
ADDITIONAL ANALYSIS
Break-Even Analysis
1. Point at which costs equal revenues.
2. Calculation: Break-Even Point = Fixed Costs / (Sales Price per Unit - Variable Cost per Unit).
Payback Period:
1. Time taken to recover the initial investment.
2. Calculation: Payback Period = Total Investment / Annual Cash Inflow.
Projected Future ROI:
1. ROI expectations for future periods.
2. Consider market trends and business growth projections.
QUALITIVE ASSESSMENT:
Strategic Alignment 🔗
How the investment aligns with broader organizational goals.
Non-Financial Impacts 📈
Effects on brand value, customer satisfaction, employee morale, etc.
RISK CONSIDERATIONS:
Risk Factors 📊
Potential risks that may affect ROI.
Mitigation Strategies 🗃️
Plans to mitigate identified risks.
CONCLUSION
ROI Value: _________%
INTERPRETATION
[A high ROI indicates a profitable investment. A low ROI suggests less financial efficiency. Based on the ROI value, decisions can be made regarding continuing, expanding, or modifying the investment.]
RECOMMENDATIONS
Suggested actions based on ROI and overall assessment (e.g., proceed with investment, revise strategy, etc.).
