A 'good' ROI depends on the investment type and time horizon. As a benchmark: the US stock market (S&P 500) has returned ~10% per year historically. Real estate averages 8–12% annually (including appreciation and rent). A savings account at 4.5–5% APY has a known, risk-free ROI. For business investments, many targets are 15–30%+. The key is comparing ROI against opportunity cost — if you can get 5% risk-free, an investment needs to offer meaningfully more to justify the risk.

What is the difference between ROI and annualized ROI?

ROI is total return over the entire holding period regardless of duration — a 50% ROI over 10 years or 1 year gives the same number. Annualized ROI (CAGR) converts that to a per-year rate, accounting for compounding. A 50% ROI over 10 years = 4.14% annualized (CAGR). Formula: Annualized ROI = (Final/Initial)^(1/years) - 1. This allows fair comparison of investments with different time horizons.

How do I calculate ROI?

ROI (%) = (Net Profit / Total Cost) × 100, where Net Profit = Final Value − Total Cost. Example: invest $10,000, sell for $14,500 → Net Profit = $4,500 → ROI = 45%. If you held for 3 years, annualized ROI = (14500/10000)^(1/3) - 1 = 13.2% per year. Include all costs (fees, taxes, maintenance) in Total Cost for an accurate result.

ROI Calculator

Calculate ROI %, net profit, annualized return (CAGR), and break-even time on any investment.

📈 Investment Details

Initial Investment ($)

Purchase price, cost basis, or capital deployed.

Final Value ($)

Current value, sale price, or projected value.

Additional Costs ($) — optional

Fees, commissions, maintenance, taxes, etc.

Holding Period (years) — for annualized ROI

🔢 ROI Formula

ROI (%) = [(Final Value − Total Cost) ÷ Total Cost] × 100

Annualized ROI = (Final ÷ Cost)^(1÷years) − 1

Example: Buy for $10,000, sell for $14,500 after 3 years. ROI = ($4,500 / $10,000) × 100 = 45%. Annualized = (1.45)^(1/3) − 1 = 13.2%/yr.

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ROI Calculator

📈 Investment Details

🔢 ROI Formula

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