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
Need real ROI calculation examples?
Read ROI Calculation Example: Property, Stocks, and Business Ventures Compared for practical comparisons across property deals, stock investments, business equipment, and side hustles.
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.
Related guides
- ROI Calculation Example - Property, stock, business, and side-hustle examples with annualized return and payback logic