HBR Tools - Return on Investment


This article concerns: https://hbr.org/product/hbr-tools-return-on-investment-roi/TLROI1-ZIP-ENG

HBR Tools: Return on Investment

Calculating ROI doesn't have to be stressful or time consuming. Master the fundamentals of ROI and make smarter investment decisions for your company. Whether you are a ROI novice or just need a refresher, HBR's Return on Investment (ROI) Tool delivers a comprehensive overview of the key concepts, terms, and models for calculating ROI with detailed examples plus customizable excel templates to help you successfully perform ROI analysis for your own project. Written and developed by Joe Knight, the bestselling author of 'Financial Intelligence,' HBR's Return on Investment Tool offers the expert content, examples, and easy-to-use templates you need to make smart and informed investment decisions for your company.

You will learn how to add up all the probable costs for an investment, estimate the returns based on cash flow, account for the time value of money, estimate projected returns over the investment's life and ultimately calculate the return on investment for your project and make smarter decisions for your team and company.


  • Read Me First guide (PDF)
    • Explains what's included in the tool and how to proceed through files
  • Part 1: Calculating ROI (PDF)
    • Lists the basic steps of ROI analysis, describes the four common methods of calculating ROI, and walks you through a simple example.
  • Part 2: Understanding ROI (PDF)
    • Explores the concepts and logic underlying ROI analysis. It will help you understand why accurate analysis requires the methodologies outlined in Part 1
  • Part 3: The Two Models (PDF)
    • Annotated spreadsheets used for the ROI analysis of two different projects; purchase of machinery and acquiring a business. The annotations will explain the assumptions and steps involved in each project.
  • Spreadsheets (Excel)
    • Contain Excel docs of the two samples from ROI analysis featured in Part 3. Each Excel file also contains blank ROI templates for use with your own projects
        • ROI Business Model

        • ROI Major Cap

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