{"id":11531,"date":"2024-11-14T10:11:23","date_gmt":"2024-11-14T10:11:23","guid":{"rendered":"https:\/\/www.hashmicro.com\/ph\/blog\/?p=11531"},"modified":"2025-12-22T09:43:32","modified_gmt":"2025-12-22T09:43:32","slug":"calculate-return-on-investment","status":"publish","type":"post","link":"https:\/\/www.hashmicro.com\/ph\/blog\/calculate-return-on-investment\/","title":{"rendered":"What is Return on Investment (ROI) and How to Calculate It"},"content":{"rendered":"<p>Imagine pouring your hard-earned money into a business, only to wonder if it&#8217;s truly paying off. Pamilyar, &#8216;di ba?<\/p>\n<p>Every peso you invest has the potential to bring in returns, but how do you know if it\u2019s working for you? For businesses, it\u2019s all about making a profit\u2014not just covering costs but actually growing. And that\u2019s where Return on Investment (ROI) comes in.<\/p>\n<p>ROI isn\u2019t just a number; it\u2019s a measure of whether each peso spent brings back more to your pocket. If you\u2019re serious about maximizing profit and making every investment count, understanding ROI isn\u2019t optional. It\u2019s the key to smarter, more profitable decisions.<\/p>\n<p>Don\u2019t miss out! Dive into this guide to learn how understanding ROI can be a game-changer for your business success.<\/p>\n<table style=\"border-collapse: coacllapse; background-color: #fffacd; border-radius: 25px 25px 25px 25px;\" width=\"100%\">\n<tbody>\n<tr>\n<td style=\"padding: 15px; border: none;\">\n<h3 style=\"margin-bottom: 10px;\"><span style=\"background-color: #990000; color: #ffffff; padding: 5px;\"><b>Key Takeaways<\/b><\/span><\/h3>\n<ul>\n<li><strong><a href=\"#what\">Understanding ROI<\/a><\/strong>: ROI is essential for assessing profitability, showing how each peso invested pays off. Calculating ROI helps guide decisions to maximize business growth and profitability.<\/li>\n<li><strong><a href=\"#improve\">Improving ROI<\/a><\/strong>: Effective marketing, product quality, and customer service drive ROI and boost business success. Focus on high-return activities to increase long-term profit and operational efficiency.<\/li>\n<li><strong><a href=\"#hash\">Automating ROI with HashMicro<\/a><\/strong>: HashMicro\u2019s Accounting Software automates ROI tracking, providing real-time insights and smart financial planning. This tool helps businesses make quick, data-driven decisions that enhance profitability.<span id=\"what\"><\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><a href=\"https:\/\/www.hashmicro.com\/ph\/free-product-tour\/?medium=free-product-tour\" target=\"_blank\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/bir-demo-gratis.webp\" data-desktop-src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/bir-demo-gratis.webp\" data-mobile-src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/mobile-bir-demo-gratis.webp\" alt=\"FreeDemo\" class=\"responsive-image-banner\" width=\"620\" height=\"255\"><\/a>\r\n\r\n<script>\r\n    \/\/ check which image to use based on screensize\r\n    document.addEventListener(\"DOMContentLoaded\", function() {\r\n        function updateImageSource() {\r\n            var images = document.querySelectorAll('.responsive-image-banner');\r\n            var screenWidth = window.innerWidth;\r\n\r\n            images.forEach(function(img) {\r\n                var mobileSrc = img.getAttribute('data-mobile-src');\r\n                var desktopSrc = img.getAttribute('data-desktop-src');\r\n\r\n                if (screenWidth < 576 && mobileSrc) {\r\n                    img.setAttribute('src', mobileSrc);\r\n                } else {\r\n                    img.setAttribute('src', desktopSrc);\r\n                }\r\n            });\r\n        }\r\n\r\n        \/\/ Initial check\r\n        updateImageSource();\r\n\r\n        \/\/ Update on resize\r\n        window.addEventListener('resize', updateImageSource);\r\n    });\r\n<\/script><div id=\"toc_group_article\" style=''>\r\n\t<p style='font-size:25px;font-weight:bold; margin-bottom:0px'>\r\n\t\tTable of Contents\r\n\t<\/p>\r\n\t<ul id=\"list_toc\" class='list_toc'><\/ul>\r\n<\/div>\r\n\r\n<div id=\"placeholder-toc\"><\/div>\r\n<div id=\"toc\">\r\n    <div class=\"header\">\r\n\t<span class=\"toc-title\" id=\"toc-title\">Content Lists<\/span>\t\r\n\t <i class=\"toc-icon\">\r\n        <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"30\" height=\"30\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"#000\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\" class=\"header-icon\">\r\n          <path d=\"m6 9 6 6 6-6\" \/>\r\n        <\/svg>\r\n      <\/i>\r\n\t<\/div>\r\n    <div class=\"list\">\r\n      <ul id=\"toc-list\"><\/ul>\r\n    <\/div>\r\n <\/div>\r\n\r\n<style>\r\n\/* Simple styling for the TOC *\/\r\n\t\r\n\t#toc ul li:last-child {\r\n    padding-bottom: 16px; \/* Adjust the value as needed *\/\r\n}\r\n\r\n.td-fix-index {\r\n\t transform: unset !important;\r\n     -webkit-transform: unset !important; \r\n}\r\n.footer-contact .td-fix-index {\r\n\t transform: translateZ(0) !important;\r\n     -webkit-transform: translateZ(0) !important; \r\n}\r\n\t.tdb_single_content .tdb-block-inner.td-fix-index{\r\n\t\tposition: static;\r\n\t}\r\n\t\r\n\r\n\t\r\n#toc {\r\n  background-color: #FFF;\r\n\tpadding: 17px 24px 20px 24px !important;\r\n  margin-bottom: 20px;\r\n\/*   border: 1px solid #9C171E; *\/\r\n  border-radius: 6px;\r\n\tdisplay: none;\r\n  max-width: 100%;\r\n  transition: .4s ease height;\r\n\tmargin-left: 0;\r\n\toverflow: hidden;\r\n}\r\n\r\n#toc .header{\r\n  display: flex;\r\n  align-items: center;\r\n  justify-content: space-between;\r\n\tbackground-color: transparent;\r\n}\r\n\t\r\n\t#toc.sticky .header{\r\n\t\tpadding: 4px 0;\r\n\t}\r\n\t\r\n.header p{\r\n  font-size: 18px !important;\r\n  font-weight: 600 !important;\r\n  color: #393939;\r\n   margin-bottom: 0;\r\n  \/* margin-top: 20px; *\/\r\n}\r\n\r\n.toc-icon{\r\n  float: right;\r\n\/*   visibility: hidden; *\/\r\n}\r\n\r\n\t.toc-title{\r\n\t\tmargin-right: auto;\r\n\/* \t\tpadding-left: 20px; *\/\r\n\t\tfont-weight: 600;\r\n\t\talign-self: center;\t}\t\r\n\r\n#toc ul {\r\n  list-style-type: none;\r\n  padding-left: 0;\r\n  padding-top: 20px;\r\n  margin-top: 0px;\r\n}\r\n\t\r\n#toc.sticky ul{\r\n\toverflow-y: auto;\r\n\tmax-height: 250px;\r\n\tmargin-top: 0px;\r\n\tpadding-top: 20px;\r\n\/* \tborder-top: 1px solid #d3d3d3; *\/\r\n}\r\n\t\r\n#toc ul li {\r\n\/*   margin-bottom: 10px; *\/\r\n  margin-bottom: 10px;\r\n\tmargin-left: 0;\r\n\ttransition: .2s ease;\r\n\tcursor: pointer;\r\n}\r\n\t\r\n\t#toc.sticky ul li {\r\n\t  margin-right: 10px;\r\n\t}\r\n\t\r\n.td-post-content #toc-list li a:hover, .td-post-content #toc-list a.active{\r\n\tbackground-color: #FFF;\r\n\/* \tpadding: 8px 16px 8px 16px; *\/\r\n\tpadding: 4px 16px 4px 16px;\r\n\tborder-radius: 6px;\r\n\tcolor: #9c171e !important;\r\n\tfont-weight: 600 !important;\r\n}\r\n\t\r\n\t.td-post-content #toc-list li:hover a, .td-post-content #toc-list a.active{\r\n\t\tcolor: #9C171E !important;\r\n\t\tfont-weight: 600 !important;\r\n\t}\r\n\t\r\n.td-post-content #toc-list a.active{\r\n\tfont-weight: bold !important;\r\n\tcolor: #9C171E !important;\r\n}\r\n\t\r\n#toc a, .td-post-content #toc-list a {\r\n  text-decoration: none;\r\n  color: #ea1717 !important;\r\n  transition: .2s ease;\r\n\tfont-weight: 400 !important;\r\n\tdisplay: block;\r\n\t\r\n\tpadding: 4px 16px 4px 0;\r\n}\r\n\r\n#toc.sticky {\r\n  position: fixed;\r\n\/*   top: 73px; *\/\r\n\tbottom: 0;\r\n  z-index: 100; \r\n  box-shadow: 0 2px 5px rgba(0,0,0,0.1); \r\n\twidth: 100%; \r\n\tbackground-color: #FFF;\r\n\/* \tbackground-color: #FFF1F1; *\/\r\n\tborder-bottom: 1px solid #ea1717;\r\n\/*   border: 1px solid #393939; *\/\r\n  box-shadow: 0px 0px 14px 0px #00000040;\r\n  cursor: pointer;\r\n\tanimation: fadein .3s ease;\r\n\tpadding: 12px 16px !important;\r\n}\r\n\t\r\n\t.fadein{\r\n\t\tanimation: fadein .3s ease;\r\n\t}\r\n\t\r\n\t.fadeout{\r\n\t\tanimation: fadeout .3s ease;\r\n\t}\r\n\t\r\n\t\r\n\t@keyframes fadein{\r\n\t\t0% {\r\n\t\t\topacity: 0;\r\n\t\t}\r\n\t\t100%{\r\n\t\t\topacity: 1;\r\n\t\t}\r\n\t}\r\n\t\r\n\t@keyframes fadeout{\r\n\t\t0% {\r\n\t\t\topacity: 1;\r\n\t\t}\r\n\t\t100%{\r\n\t\t\topacity: 0;\r\n\t\t}\r\n\t}\r\n\r\n\t\r\n#toc.sticky .header p{\r\n\tmargin-bottom: 10px;\r\n\tmargin-top: 10px;\r\n}\r\n\r\n#toc.sticky .toc-icon{\r\n  visibility: visible;\r\n\/* \ttransition: 0.4s ease; *\/\r\n}\r\n\t\r\n\t.toc-icon{\r\n\t\talign-items: center;\r\n    \tdisplay: flex;\r\n\t}\r\n\t\r\n\tsvg.header-icon{\r\n\/* \t\tbackground-color: #9c171e; *\/\r\n\t\tbackground-color: #FFF;\r\n\t\tborder-radius: 30px;\r\n\t\tpadding: 5px;\r\n\t}\r\n\r\n#toc.sticky .list{\r\n\/*   max-height: 0; *\/\r\n  transition: height 0.4s ease;\r\n}\r\n\t\r\n\t#toc .list{\r\n\/*   max-height: 0; *\/\r\n  transition: height 0.4s ease;\r\n}\r\n\r\n#toc .header.active .toc-icon{\r\n\ttransform: rotate(0deg); \r\n\topacity: 1;\r\n}\r\n\r\n\t#toc .header.active + .list {\r\n\t  max-height: 200px; \/* Adjust this value as needed *\/\r\n\t  opacity: 1;\r\n\t}\r\n\t\r\n\t#placeholder-toc{\r\n\/* \t\tdisplay: none; *\/\r\n\t}\r\n\t\r\n\t@media (min-width: 768px) and (max-width: 991px){\r\n\t\t#toc.sticky{\r\n\/* \t\t\ttop: 104px; *\/\r\n\t\t\tbottom: 0px;\r\n\t\t}\r\n\t\t\r\n\t\t#toc{\r\n\t\t\twidth: unset !important;\r\n\t\t}\r\n\t}\r\n\t\r\n\t@media (max-width: 767px){\r\n\t\t#toc{\r\n\t\t\twidth: 100% !important;\r\n\t\t\tdisplay: inline-block;\r\n\t\t}\r\n\t\t\r\n\t\t#toc.sticky{\r\n\t\t\twidth: 84% !important;\r\n\/* \t\t\ttop: 81px; *\/\r\n\t\t\tbottom: 60px;\r\n\t\t\tmargin-left: auto;\r\n\t\t\tmargin-right: auto;\r\n\t\t\tpadding: 0 16px;\r\n\/* \t\t\tright: 5%; *\/\r\n\t\t}\r\n\t}\r\n<\/style>\r\n\r\n<style>\r\n\t#list_toc li {margin-bottom: 0;margin-top: 5px;}\r\n\t#list_toc > li > ul {padding-left: 20px;margin-bottom: 0;}\r\n\t#list_toc{height:max-content;transition:ease-in-out}\r\n\t#list_toc li {margin-bottom: 0;margin-top: 5px;}\r\n\t#list_toc_float li.active > a {color:#b1252d;background: #ffe1e3;}\r\n\t#list_toc_float li a {padding:3px 7px}\r\n\t#list_toc_float li a {\r\n\t\tdisplay: block;\r\n\t\tcolor:#000;\r\n\t\tmargin-bottom: 10px;\r\n\t\ttransition:all 0.2s ease-in-out;\r\n\t\tfont-size:15px\r\n\t}\r\n\t#list_toc_float li{list-style:none;list-style-position:inside; margin-left:0;}\r\n\t#list_toc_float a:hover{color:#b1252d;}\r\n\t\r\n\t#list_toc_float li a{margin-bottom:0px}\r\n\t#toc_group_float{\r\n\t\tline-height: 24px;\r\n\t\tmax-height: calc(100vh - 100px);\r\n\t\toverflow: auto;\r\n\t\tz-index: 99;\r\n\t\tdisplay:none!important;\r\n\t\tbackground:#fff;\r\n\t\ttransition:all 0.5s linear\r\n\t}\r\n\t\r\n\t@media (min-width:1019px){\r\n\t\t#toc_group_float {\r\n\t\t\tdisplay:block!important;\r\n\t\t\t}\r\n\t\t\t\t#toc_group_article {\r\n\t\t\tdisplay:none;\r\n\t\t}\r\n\t}\r\n\t\r\n\t@media (max-width:768px){\r\n\t\t#toc_group_article {\r\n\t\t\tdisplay:none;\r\n\t\t}\r\n\t}\r\n\t\r\n\t \/* custom scrollbar style *\/\r\n::-webkit-scrollbar {\r\n    width: 7px;\r\n}\r\n::-webkit-scrollbar-track {\r\n    background: #d7a2a4;\r\n}\r\n::-webkit-scrollbar-thumb {\r\n    background: #b1252d;\r\n    border-radius: 15px;\r\n}\t\t\r\n\r\n<\/style>\r\n\r\n<script>\r\n\tdocument.addEventListener('DOMContentLoaded', function() {\r\n\t\t\/\/ Function to handle click on all <a> elements with href starting with #\r\n\t\tfunction handleTitleClick(event) {\r\n\t\t\tevent.preventDefault();\r\n\t\t\tconst targetId = this.getAttribute('href').substring(1);\r\n\t\t\tconst targetElement = document.getElementById(targetId);\r\n\r\n\t\t\tif (targetElement) {\r\n\t\t\t\tconst headerHeight = document.querySelector('#toc .header').offsetHeight;\r\n\t\t\t\tconst navbarHeight = document.getElementById('tdi_34') ? document.getElementById('tdi_34').offsetHeight : 0;\r\n\t\t\t\tconst windowHeight = window.innerHeight;\r\n\t\t\t\tconst targetOffset = targetElement.offsetTop;\r\n\t\t\t\tconst scrollTo = targetOffset + (windowHeight \/ 2) + (headerHeight) - navbarHeight 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header.clientHeight;\r\n\t\tif(window.innerWidth < 767){\r\n\t\t\ttocTitle.textContent = 'Table of Contents'; \/\/ Selalu pertahankan judul ini di mobile\r\n\t\t} else {\r\n\t\t\tif (window.scrollY >= (headerTop - headerHeight + 700)) {\r\n\t\t\t\tconst currentHeaderId = header.getAttribute('id');\r\n\t\t\t\tconst currentHeaderText = document.getElementById(currentHeaderId).textContent;\r\n\t\t\t\ttocTitle.textContent = currentHeaderText;\r\n\t\t\t\tcurrentHeader = currentHeaderId;\r\n\t\t\t}\r\n\t\t}\r\n\t});\r\n\r\n    navLinks.forEach(link => {\r\n      link.classList.remove('active');\r\n      if(currentHeader != '') {\r\n\t\t  if (link.getAttribute('href').includes(currentHeader)) {\r\n\t\t\t  link.classList.add('active');\r\n\t\t  }\r\n\t  }\r\n    });\r\n\r\n    \/\/ Update TOC title if sticky\r\n    if (windowTop > triggerPoint) {\r\n      if (!toc.classList.contains('sticky')) {\r\n        phtoc.style.display = \"block\";\r\n        toc.classList.add('sticky');\r\n        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title\r\n\t\tpanel2.style.height = panel2.scrollHeight + \"px\";\r\n\t\ticon.style.transform = \"rotate(180deg)\";\r\n    }\r\n  }\r\n\r\n    \/\/ Attach the scroll event listener to the window\r\n    window.addEventListener('scroll', handleScroll);\r\n\r\n    \/\/ Initial call to handleScroll to set the correct state on load\r\n    handleScroll();\r\n});\r\n\t\r\n\t\/\/ Open toggle TOC\r\n\t  document.addEventListener(\"DOMContentLoaded\", function() {\r\n\t\tvar tocHeader = document.querySelector(\"#toc .header\");\r\n\t\tvar toc = document.querySelector(\"#toc\");\r\n\t\tvar icon = document.querySelector(\".toc-icon\");\r\n\t\tconst tocTitle = document.querySelector('#toc-title');\r\n\t\tconst tocs = document.querySelector('#toc.sticky');\r\n \t\tconst tocParent = toc.parentElement;\t\t  \r\n\r\n\t\t  tocHeader.addEventListener(\"click\", function() {\r\n\t\t\tvar panel = this.nextElementSibling;\r\n\t\t\tif (panel.style.height !== '0px') { \/\/ Check if height is not 0px\r\n\t\t\t  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element\r\n\r\n\/\/                 \/\/ Scroll to the calculated position smoothly\r\n\/\/                 window.scrollTo({\r\n\/\/                     top: scrollTo,\r\n\/\/                     behavior: 'smooth'\r\n\/\/                 });\r\n\/\/             }\r\n\/\/         });\r\n\/\/     });\r\n\/\/ });\r\n<\/script>\r\n\r\n<script>\r\n    \/\/ Scrollspy function to highlight the active TOC item based on the scroll position\r\n  function scrollSpy(tocClass) {\r\n    const scrollPosition = window.scrollY;\r\n\r\n    \/\/ Find the active h2 and h3 headings based on their position in the corresponding TOC\r\n    let activeH2 = null;\r\n    let activeH3 = null;\r\n\r\n    const tocItems = document.querySelectorAll(`.${tocClass} li`);\r\n    tocItems.forEach(item => {\r\n      const a = item.querySelector('a');\r\n      if (!a) return;\r\n      const href = a.getAttribute('href');\r\n      const targetId = href.substring(1); \/\/ Remove the '#' from the href to get the target ID\r\n      const targetElement = document.getElementById(targetId);\r\n      if (!targetElement) return;\r\n\r\n      const targetTop = targetElement.getBoundingClientRect().top + scrollPosition;\r\n      const nextItem = item.nextElementSibling;\r\n      const nextTop = nextItem ? nextItem.getBoundingClientRect().top + scrollPosition : Infinity;\r\n\r\n      if (targetTop <= scrollPosition + 150) {\r\n        if (a.parentElement.parentElement === tocItems) {\r\n          \/\/ The h2 heading is at the root level of the TOC\r\n          activeH2 = { id: targetId, level: 'h2' };\r\n        } else {\r\n          \/\/ The h3 heading is nested under an h2 heading\r\n          const parentH2 = a.parentElement.parentElement.previousElementSibling;\r\n          if (parentH2) {\r\n            const h2Link = parentH2.querySelector('a');\r\n            if (h2Link) {\r\n              const h2Href = h2Link.getAttribute('href');\r\n              const h2Id = h2Href.substring(1);\r\n              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here if you have more than two instances\r\n  tocClasses.forEach(tocClass => {\r\n    window.addEventListener('scroll', () => scrollSpy(tocClass));\r\n  });\r\n<\/script>\r\n\t\r\n\r\n<!-- ToC List for desktop side bar, diganti jadi inject by php, di code snippet \"Sidebar Accordion\" -->\r\n<!-- <script>\r\n\tdocument.addEventListener('DOMContentLoaded', function() {\r\n        let headerCounter = 0; \/\/ Counter to generate unique IDs\r\n\r\n\t\t\/\/ Function to generate ID in header0, header1, etc. format\r\n\t\tfunction formatId() {\r\n\t\t\treturn `header-${headerCounter++}`; \/\/ ID format: header0, header1, etc.\r\n\t\t}\r\n\r\n\/\/ \t\tfunction formatId(text) {\r\n\/\/             return text.trim().replace(\/[^\\w\\d]+\/g, '_');\r\n\/\/         }\r\n\t\r\n        \/\/ Function to create nested list\r\n        function createNestedList(parentNode, children) {\r\n            if (children.length === 0) return;\r\n\r\n            const nestedUl = document.createElement('ul');\r\n  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generated ID\r\n\t\t\tli.appendChild(a);\r\n\r\n\t\t\tif (heading.level === 'h2') {\r\n\t\t\t\tcurrentUl = li;\r\n\t\t\t\tul.appendChild(li);\r\n\t\t\t} else if (heading.level === 'h3') {\r\n\t\t\t\tif (!currentUl.lastElementChild || currentUl.lastElementChild.tagName !== 'UL') {\r\n\t\t\t\t\tconst nestedUl = document.createElement('ul');\r\n\t\t\t\t\tcurrentUl.appendChild(nestedUl);\r\n\t\t\t\t\tcurrentUl = nestedUl;\r\n\t\t\t\t}\r\n\t\t\t\tcurrentUl.appendChild(li);\r\n\t\t\t}\r\n\r\n\t\t\tcreateNestedList(li, heading.children);\r\n\t\t});\r\n\t\t\/\/ Get ul element with id 'list_toc'\r\n\t\tconst ulFloat = document.getElementById('list_toc');\r\n\r\n\t\t\/\/ Get content (child elements) from ul with id 'list_toc'\r\n\t\tconst clonedChildren = ulFloat.cloneNode(true).children;\r\n\r\n\t\t\/\/ Get ul element with id 'list_toc_float'\r\n\t\tconst ulToc = document.getElementById('list_toc_float');\r\n\r\n\t\t\/\/ Add content obtained from 'list_toc' to ul with id 'list_toc_float'\r\n\t\tulToc.append(...clonedChildren);\r\n\r\n\r\n        \/\/ Function to get navbar height\r\n\t\tfunction getNavbarHeight() {\r\n\t\t\tconst navbar = document.getElementById('tdi_34');\r\n\t\t\treturn navbar ? navbar.offsetHeight : 0;\r\n\t\t}\r\n\r\n\t\t\/\/ Function to add scroll position offset\r\n\t\tfunction scrollToElementWithOffset(elementId) {\r\n\t\t\tconst element = document.getElementById(elementId);\r\n\t\t\tif (element) {\r\n\t\t\t\tconst offset = getNavbarHeight();\r\n\t\t\t\tconst elementPosition = element.getBoundingClientRect().top;\r\n\t\t\t\tconst offsetPosition = elementPosition - offset - 40;\r\n\r\n\t\t\t\twindow.scrollBy({\r\n\t\t\t\t\ttop: offsetPosition,\r\n\t\t\t\t\tbehavior: 'smooth'\r\n\t\t\t\t});\r\n\t\t\t}\r\n\t\t}\r\n\r\n\t\t\/\/ Function to handle title link click\r\n\t\tfunction handleTitleClick(event) {\r\n\t\t\tevent.preventDefault();\r\n\t\t\tconst href = event.target.getAttribute('href').substr(1);\r\n\t\t\tscrollToElementWithOffset(href);\r\n\t\t}\r\n\r\n\t\t\/\/ Add event listener for all title links\r\n\t\tconst titleLinks = document.querySelectorAll('a[href^=\"#\"]');\r\n\t\ttitleLinks.forEach(link => {\r\n\t\t\tlink.addEventListener('click', handleTitleClick);\r\n\t\t});\r\n\t});\r\n    <\/script> -->\r\n<\/p>\n<h2><strong>What is Return on Investment (ROI)?<\/strong><\/h2>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-11550 size-full\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/Banner-Yanda-2024-11-12T154144.921.webp\" alt=\"what is return on investment?\" width=\"1200\" height=\"650\" srcset=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/Banner-Yanda-2024-11-12T154144.921.webp 1200w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/Banner-Yanda-2024-11-12T154144.921-300x163.webp 300w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/Banner-Yanda-2024-11-12T154144.921-1024x555.webp 1024w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/Banner-Yanda-2024-11-12T154144.921-768x416.webp 768w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/Banner-Yanda-2024-11-12T154144.921-775x420.webp 775w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/Banner-Yanda-2024-11-12T154144.921-150x81.webp 150w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/Banner-Yanda-2024-11-12T154144.921-696x377.webp 696w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/Banner-Yanda-2024-11-12T154144.921-1068x580.webp 1068w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p>Return on Investment, or ROI, is a simple way to determine how much profit you\u2019re making from an investment compared to its cost. <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/top-accounting-software-philippines\/\"><span data-sheets-root=\"1\">accounting platforms<\/span><\/a>\u00a0can make this easier, acting as a financial scorecard that shows whether your spending is paying off.<\/p>\n<p>For example, if you invest in marketing, improving operations, or developing a new product, ROI helps you see if these expenses are truly bringing in more than they cost. So, how does ROI work? It\u2019s measured as a percentage, which makes it easy to understand.<\/p>\n<p>Here\u2019s the basic formula:<\/p>\n<p><strong>ROI = (Net Profit \/ Cost of Investment) x 100<\/strong><\/p>\n<p>If the result is positive, your investment is making money. If it\u2019s negative, it\u2019s a loss. This clear number helps business owners decide if they should keep investing in something or make changes to boost profits.<\/p>\n<h2><strong>The Difference Between Revenue, Turnover, and Profit<\/strong><\/h2>\n<p>It&#8217;s crucial to distinguish between revenue, turnover, and profit as they each play distinct roles in evaluating business performance:<\/p>\n<table style=\"width: 100%; border-collapse: collapse;\" border=\"1\" cellspacing=\"0\" cellpadding=\"5\">\n<thead>\n<tr>\n<th style=\"text-align: center; background-color: #9c171e; color: white; border: 1px solid black;\"><b>Type<\/b><\/th>\n<th style=\"text-align: center; background-color: #9c171e; color: white; border: 1px solid black;\"><b>Difference<\/b><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"border: 1px solid black; width: 18%;\">Revenue<\/td>\n<td style=\"border: 1px solid black; width: 82%;\">The total income generated from all sales. It shows the gross amount earned before any expenses are considered.<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid black;\">Turnover<\/td>\n<td style=\"border: 1px solid black;\">The flow of money made from business operations over a certain period. It indicates how efficiently the business generates income but doesn\u2019t account for costs.<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid black;\">Profit<\/td>\n<td style=\"border: 1px solid black;\">The amount left after subtracting all expenses, including production and salaries. It represents the actual earnings and is often called \u201cnet profit.\u201d<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Many people confuse turnover with profit. However, turnover is a measure of gross income, while profit reflects net earnings after expenses.<\/p>\n<h2><strong>Why is ROI Important for Your Business?<\/strong><\/h2>\n<p>Understanding and calculating Return on Investment (ROI) is essential for businesses seeking to make informed financial choices and boost profitability. Here are some key reasons why ROI is so valuable:<\/p>\n<ul>\n<li><strong>Guiding Investment Decisions<\/strong>: ROI shows which investments bring the most value, helping business owners prioritize high-return initiatives and spend funds wisely.<\/li>\n<li><strong>Measuring Marketing Effectiveness<\/strong>: ROI helps evaluate the success of marketing efforts, revealing which campaigns deliver the best results and allowing for smarter, more focused strategies.<\/li>\n<li><strong>Enhancing Operational Efficiency<\/strong>: By focusing on high-ROI activities, companies can streamline operations, reduce unnecessary spending, and improve overall productivity.<\/li>\n<li><strong>Increasing Business Profitability<\/strong>: ROI analysis directs focus to profit-driving areas, helping businesses cut waste and achieve greater financial success.<\/li>\n<\/ul>\n<p>In summary, calculating ROI provides businesses with a clear understanding of which efforts yield the most profit, ensuring resources are allocated wisely. By focusing on high-ROI activities, companies can enhance their financial stability and achieve sustained growth.<span id=\"improve\"><\/span><\/p>\n<a href=\"https:\/\/www.hashmicro.com\/ph\/offer\/download-erp-pricing-list?medium=banner-article\" target=\"_blank\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/bir-skema-harga.webp\" data-desktop-src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/bir-skema-harga.webp\" data-mobile-src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/mobile-bir-skema-harga.webp\" alt=\"SkemaHarga\" class=\"responsive-image-banner\" width=\"620\" height=\"255\"><\/a>\r\n\r\n<script>\r\n    \/\/ check which image to use based on screensize\r\n    document.addEventListener(\"DOMContentLoaded\", function() {\r\n        function updateImageSource() {\r\n            var images = document.querySelectorAll('.responsive-image-banner');\r\n            var screenWidth = window.innerWidth;\r\n\r\n            images.forEach(function(img) {\r\n                var mobileSrc = img.getAttribute('data-mobile-src');\r\n                var desktopSrc = img.getAttribute('data-desktop-src');\r\n\r\n                if (screenWidth < 576 && mobileSrc) {\r\n                    img.setAttribute('src', mobileSrc);\r\n                } else {\r\n                    img.setAttribute('src', desktopSrc);\r\n                }\r\n            });\r\n        }\r\n\r\n        \/\/ Initial check\r\n        updateImageSource();\r\n\r\n        \/\/ Update on resize\r\n        window.addEventListener('resize', updateImageSource);\r\n    });\r\n<\/script>\n<h2><strong>How to Improve Your Return on Investment<\/strong><\/h2>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-11552 size-full\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/Banner-Yanda-2024-11-12T154158.384.webp\" alt=\"how to improve ROI\" width=\"1200\" height=\"650\" srcset=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/Banner-Yanda-2024-11-12T154158.384.webp 1200w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/Banner-Yanda-2024-11-12T154158.384-300x163.webp 300w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/Banner-Yanda-2024-11-12T154158.384-1024x555.webp 1024w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/Banner-Yanda-2024-11-12T154158.384-768x416.webp 768w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/Banner-Yanda-2024-11-12T154158.384-775x420.webp 775w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/Banner-Yanda-2024-11-12T154158.384-150x81.webp 150w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/Banner-Yanda-2024-11-12T154158.384-696x377.webp 696w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/Banner-Yanda-2024-11-12T154158.384-1068x580.webp 1068w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p>For Filipino businesses aiming to boost their Return on Investment (ROI), there are several effective strategies that can make a significant difference. Here\u2019s how you can maximize every peso invested to grow your business sustainably:<\/p>\n<h3>1. Effective marketing campaigns<\/h3>\n<p>Effective marketing is a key driver of ROI. By focusing on promotions that target the right audience, businesses can increase visibility and sales.<\/p>\n<p>Strategic marketing not only attracts new customers but also maximizes the impact of each marketing dollar spent, creating a more efficient use of resources that directly benefits ROI.<\/p>\n<h3>2. Enhancing product quality<\/h3>\n<p>Quality is crucial in attracting and retaining customers. High-quality products often command higher prices, increasing revenue. Moreover, investing in quality builds trust and loyalty among customers, leading to repeat purchases.<\/p>\n<p>This loyalty is invaluable for long-term ROI, as customers who trust your brand are likely to return, helping boost overall profitability.<\/p>\n<h3>3. Providing outstanding customer service<\/h3>\n<p>Exceptional customer service is a powerful asset in improving ROI. Satisfied customers are more likely to return and recommend your business to others.<\/p>\n<p>By offering responsive and helpful service, businesses can increase customer satisfaction, which leads to sustained sales. Repeat business and word-of-mouth referrals are cost-effective ways to boost ROI.<\/p>\n<h2><strong>Practical Example of Calculating ROI<\/strong><\/h2>\n<p>Let\u2019s take an example:<\/p>\n<p>A Filipino shoe business, &#8220;Zapatos,&#8221; produces 500 pairs of shoes, each priced at \u20b1200. The production costs amount to \u20b157,000. After selling all 500 pairs, Zapatos generates \u20b1100,000 in revenue. The profit, after deducting expenses, is \u20b143,000.<\/p>\n<p>To calculate ROI:<\/p>\n<ol>\n<li><strong>Number of Shoes Produced<\/strong> = 500<\/li>\n<li><strong>Price per Shoe<\/strong> = \u20b1200<\/li>\n<li><strong>Production Costs<\/strong> (Cost of Investment) = \u20b157,000<\/li>\n<li><strong>Total Revenue<\/strong> = Number of Shoes Produced x Price per Shoe = 500 x \u20b1200 = \u20b1100,000<\/li>\n<li><strong>Net Profit<\/strong> = Total Revenue &#8211; Production Costs = \u20b1100,000 &#8211; \u20b157,000 = \u20b143,000<\/li>\n<\/ol>\n<p><img decoding=\"async\" class=\"alignnone wp-image-21737\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/roi-formula-300x29.webp\" alt=\"roi formula\" width=\"662\" height=\"64\" srcset=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/roi-formula-300x29.webp 300w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/roi-formula-768x74.webp 768w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/roi-formula-150x15.webp 150w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/roi-formula-696x68.webp 696w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/roi-formula.webp 1000w\" sizes=\"(max-width: 662px) 100vw, 662px\" \/><\/p>\n<p>Substitute values:<\/p>\n<p><img decoding=\"async\" class=\"alignnone wp-image-21740\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/roi-formula-with-value-300x29.webp\" alt=\"roi formula with value\" width=\"672\" height=\"65\" srcset=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/roi-formula-with-value-300x29.webp 300w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/roi-formula-with-value-768x73.webp 768w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/roi-formula-with-value-150x14.webp 150w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/roi-formula-with-value-696x66.webp 696w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/roi-formula-with-value.webp 1000w\" sizes=\"(max-width: 672px) 100vw, 672px\" \/><\/p>\n<p>This 75% ROI shows that for every peso invested, the company gains \u20b10.75 in profit.<\/p>\n<h2><strong>Benefits of Tracking ROI in Business<\/strong><\/h2>\n<p>Tracking ROI offers critical insights for businesses of any size. Here\u2019s how it adds value:<\/p>\n<ul>\n<li><strong>Improve Financial Planning<\/strong>: ROI highlights areas with the best returns, helping businesses allocate resources more effectively and make smarter investments.<\/li>\n<li><strong>Prioritize High-Return Activities<\/strong>: By identifying activities that yield the most profit, companies can focus on what truly drives growth.<\/li>\n<li><strong>Enhance Budget Efficiency<\/strong>: ROI tracking allows businesses to allocate budgets wisely, ensuring funds are directed to impactful initiatives.<\/li>\n<li><strong>Evaluate Marketing Success<\/strong>: Assessing ROI on marketing efforts reveals which campaigns are most effective, guiding better marketing strategies.<\/li>\n<li><strong>Enable Strategic Adjustments<\/strong>: Regular ROI analysis helps businesses monitor and adjust strategies, staying competitive and financially resilient.<\/li>\n<\/ul>\n<p>In short, tracking ROI empowers businesses to make informed, data-driven decisions, ensuring sustainable growth and profitability.<span id=\"hash\"><\/span><\/p>\n<h2><strong>Automate Return on Investment Calculation with HashMicro&#8217;s Accounting Software<\/strong><\/h2>\n<p><img decoding=\"async\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/02\/accounting-software-hm.webp\" alt=\"accounting software Hashmicro\" \/><\/p>\n<p>Calculating ROI manually can be a time-consuming and error-prone task, especially when managing multiple investments, expenses, and revenue streams. <a href=\"https:\/\/www.hashmicro.com\/ph\/accounting-software\">HashMicro\u2019s Accounting Software<\/a> simplifies the process by automating these calculations, giving you instant, accurate insights into your business&#8217;s financial health.<\/p>\n<p>By removing the guesswork, you can make smart, data-driven decisions with confidence. Here\u2019s how HashMicro\u2019s Accounting Software can truly benefit your business:<\/p>\n<ul>\n<li><strong>Save Time and Reduce Manual Work<\/strong>: Say goodbye to complex spreadsheets and manual calculations. HashMicro\u2019s software automates the process, letting you focus on what matters\u2014growing your business.<\/li>\n<li><strong>Get Instant Financial Insights<\/strong>: This software provides real-time data on profits, expenses, and investments so you can quickly see which areas deliver the best returns.<\/li>\n<li><strong>Make Smarter Financial Decisions<\/strong>: By tracking ROI automatically, HashMicro helps you make informed choices on where to allocate funds, ensuring your resources are used effectively.<\/li>\n<li><strong>Optimize Budget Allocation<\/strong>: With clear ROI data at your fingertips, you can easily spot which activities are worth investing in and which aren\u2019t, optimizing your budget for maximum impact.<\/li>\n<li><strong>Boost Profitability with Accurate ROI Tracking<\/strong>: The software\u2019s precise calculations help you zero in on high-return activities, boosting overall profitability and keeping your business on a growth path.<\/li>\n<\/ul>\n<p>Having a tool that simplifies financial decisions is invaluable. Using an <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/accounting-system\/\">accounting system<\/a> gives you a competitive edge by making ROI tracking fast, easy, and precise. Whether you&#8217;re a startup or an established enterprise, HashMicro empowers you to understand your financial landscape and invest confidently.<\/p>\n<h2><strong>Conclusion<\/strong><\/h2>\n<p>Knowing about ROI is crucial for any business aiming for long-term growth and success. By focusing on profitable investments and product quality, Filipino entrepreneurs can make smarter financial choices, boost profitability, and improve their return on equity. ROI provides a clear view of what drives success, helping you maximize every peso while ensuring sustainable financial growth and a strong <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/return-on-equity-roe\/\">return on equity<\/a>.<\/p>\n<p><a href=\"https:\/\/www.hashmicro.com\/ph\/accounting-software\">HashMicro\u2019s Accounting Software<\/a> simplifies ROI tracking, making financial management easy and accurate. With automated calculations, real-time insights, and smart budgeting, you can focus on growing your business. Try HashMicro\u2019s <a href=\"https:\/\/www.hashmicro.com\/ph\/free-product-tour\/\">free demo<\/a> today to see the difference it can make!<\/p>\n<a href=\"https:\/\/www.hashmicro.com\/ph\/accounting-software?medium=moneysite-banner\" target=\"_blank\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/bir-accounting.webp\" data-desktop-src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/bir-accounting.webp\" data-mobile-src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/mobile-br-accounting.webp\" alt=\"Accounting\" class=\"responsive-image-banner\" width=\"620\" height=\"255\"><\/a>\r\n\r\n<script>\r\n    \/\/ check which image to use based on screensize\r\n    document.addEventListener(\"DOMContentLoaded\", function() {\r\n        function updateImageSource() {\r\n            var images = document.querySelectorAll('.responsive-image-banner');\r\n            var screenWidth = window.innerWidth;\r\n\r\n            images.forEach(function(img) {\r\n                var mobileSrc = img.getAttribute('data-mobile-src');\r\n                var desktopSrc = img.getAttribute('data-desktop-src');\r\n\r\n                if (screenWidth < 576 && mobileSrc) {\r\n                    img.setAttribute('src', mobileSrc);\r\n                } else {\r\n                    img.setAttribute('src', desktopSrc);\r\n                }\r\n            });\r\n        }\r\n\r\n        \/\/ Initial check\r\n        updateImageSource();\r\n\r\n        \/\/ Update on resize\r\n        window.addEventListener('resize', updateImageSource);\r\n    });\r\n<\/script>\n<h2><strong>FAQ Around Return on Investment<\/strong><\/h2>\n<ul class=\"bottom_faq\">\n<li>\n<details>\n<summary><strong>What is ROI and why is it important? <\/strong><\/summary>\n<p>ROI, or Return on Investment, measures the profitability of an investment compared to its cost. It&#8217;s essential for tracking financial success and making smart, profit-focused decisions.<\/p>\n<\/details>\n<\/li>\n<li>\n<details>\n<summary><strong>What is the meaning of ROI?<\/strong><\/summary>\n<p>ROI stands for Return on Investment, a key metric that shows how much profit an investment brings relative to its cost. It helps businesses understand the value of their spending.<\/p>\n<\/details>\n<\/li>\n<li>\n<details>\n<summary><strong>Why is it important to calculate the return on investment?<\/strong><\/summary>\n<p>Calculating ROI reveals which investments yield the most profit, guiding smarter financial choices. It allows businesses to focus on activities that drive growth and profitability.<\/p>\n<\/details>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Imagine pouring your hard-earned money into a business, only to wonder if it&#8217;s truly paying off. Pamilyar, &#8216;di ba? Every peso you invest has the potential to bring in returns, but how do you know if it\u2019s working for you? For businesses, it\u2019s all about making a profit\u2014not just covering costs but actually growing. And [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":11551,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[157],"tags":[],"class_list":{"0":"post-11531","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-accounting"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is Return on Investment (ROI) and How to Calculate It<\/title>\n<meta name=\"description\" content=\"Return on Investment (ROI) measures profit relative to cost. 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