ROI Calculator

Calculate return on investment percentage

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ROI Formulas

Basic ROI Formula

ROI = ((Final Value - Initial Investment) ÷ Initial Investment) × 100

Example: If you invest $10,000 and it grows to $15,000:
ROI = (($15,000 - $10,000) ÷ $10,000) × 100 = 50%

Annualized ROI

Annualized ROI = ((Final Value ÷ Initial Investment)^(1 ÷ Years) - 1) × 100

This shows the average return per year, useful for comparing investments of different lengths.

ROI Benchmarks

Typical ROI ranges for different investments

S&P 500 (Historical Average)10-11% annually
Real Estate8-12% annually
Bonds2-5% annually
High-Yield Savings1-5% annually
Small BusinessVaries widely (15-30%+)
Venture CapitalVaries widely (high risk)

Note: Past performance doesn't guarantee future results. These are historical averages and actual returns vary.

Understanding ROI

What is ROI?

Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or compare the efficiency of several investments.

Good ROI vs Bad ROI

A "good" ROI depends on factors like time period, risk, and opportunity cost. Generally, beating inflation (2-3%) and the stock market average (10%) are good benchmarks.

Limitations

ROI doesn't account for risk, time value of money (without annualization), or opportunity cost. Use it alongside other metrics for complete analysis.