Glossary · R
ROI (return on investment)
The ratio of what an investment returns to what it costs — (gains − costs) / costs.
Return on investment computes simply: (attributable gains − total costs) / total costs. A $100-per-month tool recovering three $300 jobs returns (900 − 100) / 100 = 800% monthly ROI. The difficulty is never the formula but attribution: which part of the gains actually comes from the tool?
Two traps separate honest calculations from sales ones. The first: counting only direct gains (appointments booked), forgetting indirect ones — admin time saved, evenings recovered, churn avoided among well-treated customers. The second, symmetric: attributing everything to the tool, including customers who would have come anyway. The clean method is the measured pilot: one month with, one month without, and the difference on the dashboard — not on feelings.
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