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🏢 Business

ROI Calculator

Calculate return on investment, net profit, and annualized return. Enter your initial cost and final value.

Enter investment amount and return value above
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ROI formulas

  • ROI % = (Net Profit ÷ Cost of Investment) × 100
  • Net Profit = Final Value − Cost of Investment
  • Annualized ROI = ((1 + ROI)^(1/years) − 1) × 100

What is a good ROI?

It depends entirely on the asset class and timeframe. The S&P 500 has historically returned ~10% annually. Real estate averages 8–12%. Marketing campaigns often target 5:1 ROI (400% return) as a minimum viable benchmark.

ROI vs annualized ROI

A total ROI of 100% over 10 years sounds impressive, but annualised it's only ~7.2% per year. Always compare investments using annualized ROI so timeframes don't distort the comparison.