ROI Calculator
Calculate Return on Investment for any project or investment.
ROI Calculator
Total ROI
50.0%
Annualized ROI
14.5%
Net Gain/Loss
$5,000
Understanding Return on Investment
ROI (Return on Investment) measures the profitability of an investment relative to its cost. It's expressed as a percentage and is one of the most widely used metrics for comparing investment opportunities and measuring business performance.
ROI Formula
ROI = (Net Profit / Investment Cost) × 100. For multi-year investments, the annualized ROI gives a yearly rate that accounts for the time value of money, making it easier to compare investments with different holding periods.
What's a Good ROI?
- S&P 500 Average: ~10% annually (historically)
- Real Estate: 8-12% annually (varies by market)
- Business Investment: Generally, ROI above 15-20% is considered strong