Emma Geerts

Emma Geerts

SEO & Communications Specialist
25-8-2022 How to/DIY,

What does ROI mean and how do you calculate it?

Return on investment (ROI) is a measure of the extent to which an organisation's money is invested to achieve favourable returns. In other words, ROI measures the efficiency of an organisation's investments. It helps managers evaluate the effectiveness of their investment strategies by showing whether or not their investments are generating a positive return. If you don't know exactly what this means, don't worry! This article will explain everything you need to know about Return on Investment (ROI) and why it is important for your business.

What is Return on Investment (ROI)?

Return on investment (ROI) is a measure of the profitability of an investment relative to the cost of the investment. The ROI of an investment is calculated by taking the difference between the return on an investment and the cost of the investment and dividing that amount by the cost of the investment. Although the exact formula used to calculate ROI varies, the concept remains the same: ROI is the difference between the money earned and the amount invested, divided by the amount invested.

How do you calculate ROI?

There are many different ways to calculate the return on investment for a particular project or investment. However, most methods for calculating ROI fall into one of two categories: accounting-based methods and cash flow-based methods. Accounting-based methods for calculating ROI measure profitability based on how much was earned or lost on an investment in a given time period, such as a quarter or a year. Cash flow-based methods for calculating ROI, on the other hand, measure profitability based on how much money actually flows in and out of an investment over its lifetime.

Why is ROI important?

Simply put, a high return on investment means that you are making a lot of profit from your business. This is a good sign because it means you are making money while spending relatively little. But a low return on investment means you are spending a lot of money while earning very little. In other words, ROI is a crucial measure for businesses. A high ROI means you get a lot of profit from your investments, i.e. you spend less money to make money. A low ROI means you are spending a lot of money for little profit, which means you need to re-evaluate your strategy.

ROI as a yardstick

While ROI is an important measure for businesses, it is not the only measure you should consider when making investment decisions. In fact, you should always consider multiple metrics when making investment decisions. Metrics such as cost of capital and financial risk are also important to keep in mind when analysing investments. Cost of capital is the minimum return an investor expects from a particular investment. Financial risk is a measure of the probability that an investment will lose money.

Getting started with ROI

Return on investment is an important metric for companies to pay attention to. A high ROI means you make a lot of profit from your investments, while a low ROI means you spend a lot of money for little profit. When making investment decisions, you should always consider multiple metrics such as cost of capital and financial risk when calculating ROI.

Wondering what we can do for you? Contact our SEO specialists, or view the SEO services which we offer. Looking for targeted SEO advice? Then do a live Live SEO analysis and get instant insight into how your site is doing, or request an immediate SEO audit to



Any questions?

Get in touch! :) we are happy to help you with all your SEO questions

SEO question

Don't miss it

Subscribe to our newsletter and don't miss a single SEO tip

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Any questions?

Do you want to know more about SEO? Could your website use a new boost?
Get in touch

This is us!

A team of SEO specialists

Our team consists of enthusiastic SEO specialists who are happy to work with you for the best results.

Meet our team

These customers are supupside down from us!

Renzo van Dongen

Renzo van Dongen

Digital content manager Peugeot

Whether it's about content or technical adjustments, it doesn't matter. Martijn briefs this in a very clear way so that it can be implemented locally or by our head office in France. [...] Since the start of our collaboration, we have achieved great results. Keep it up!

Marien van Stegeren

Eigenaar Kitcentrum

When your online onder venture grows, expectations often grow too, in every area. To a large extent, we were in control of SEO and its interpretation ourselves. We found out that our own "general view" was no longer sufficient, so we engaged Bureau Onder. Surprising and clear. We have built up a fine collaboration, partly because Martijn also regularly visits our office with Eline or Mariska (depending on the case), which is very valuable to us!

Marten Stellingwerf


Martijn and Mariska make the SEO story understandable for the layman and are happy to think along with us. It is nice that there is a personal contact moment every month with an extensive report and the opportunity to talk everything through. After just a few months, Onder has already managed to achieve number 1 positions on Google with some of our webshop pages. We are very satisfied with Onder.

Mark Prummel

SEO Specialist Stella Fietsen

For several years, Onder has been a valued partner of Stella. Martijn is my sparring partner for complex SEO issues and the extra pair of critical eyes that keeps us on our toes. Together, we have achieved nice growth in online visibility, visitor numbers and leads. Onder onder stands out for its short lines of communication and professionalism. They speak our language: don't nag, get down to business. That is what we love!


Don't miss a single SEO insight
  • Insights on SEO
  • For beginners and advanced specialists
  • From experiments to developments at Google and from
    best practices to our own cases
  • A look behind the scenes at Onder

"*" indicates required fields

This field is for validation purposes and should be left unchanged.