ROI Calculator
Calculate the return on investment for any business decision, project, or investment.
Formula
ROI = (Net Profit / Cost) × 100
CAGR = (End/Start)^(1/yrs) − 1
ROI Benchmarks
| S&P 500 (avg annual) | ~10% |
| Real estate | 8–12% |
| Small business | 15–30%+ |
| Marketing campaigns | 4–5× spend |
FAQs
What counts as "good" ROI depends on the investment type. For stocks, 7–10% annually is considered good. For real estate, 8–12%. For business investments, 15–30%+ may be expected. Compare to alternative uses of capital.
ROI is the total return over any period, while CAGR (Compound Annual Growth Rate) is the annualized rate. A 100% ROI over 5 years is a 14.9% CAGR — very different from a 100% ROI in 1 year.
ROI doesn't account for time value of money (without annualizing), risk, or opportunity cost. Two investments with the same ROI may have very different risk profiles. Use ROI alongside other metrics like IRR and NPV for major decisions.