Recovery Investment ROI Calculator
Assess whether a 'build back better' recovery or resilience investment pays off by comparing its upfront cost with the benefits it returns over time. Enter the investment, expected annual benefit, and analysis period to see the net benefit and ROI.
Formula
ROI = (Total Benefit − Investment) ÷ Investment
- The total benefit is the annual benefit multiplied by the number of years analysed.
- Net benefit subtracts the upfront investment from that total benefit.
- ROI expresses the net benefit as a percentage of the investment.
- A positive ROI means the recovery or resilience spending more than pays for itself over the period.
- This is a simple, non-discounted estimate — it ignores inflation and the time value of money.
30,000 investment, 9,500/year over 5 years
Inputs
- Recovery Investment: 30000
- Annual Benefit: 9500
- Analysis Period (years): 5
Total benefit = 9,500 × 5 = 47,500. Net benefit = 47,500 − 30,000 = 17,500, an ROI of 17,500 ÷ 30,000 ≈ 58%.
Frequently asked questions
What does 'build back better' mean financially?
It's the idea of investing extra during recovery to make assets more resilient, so future losses fall. This calculator weighs that extra cost against the benefits.
How is ROI calculated here?
ROI = (total benefit − investment) ÷ investment, where total benefit is the annual benefit times the number of years.
Does it account for inflation?
No. It's an undiscounted estimate. For long horizons, consider discounting future benefits to present value.
What's a good ROI?
Any positive ROI means the benefits exceed the cost. Compare it against alternative uses of the same funds to decide.
Can I use this for any resilience project?
Yes — it works for any investment with a recurring annual benefit, such as flood defences, retrofits, or backup systems.