ROI Calculator

Calculate the return on investment (ROI) for any purchase, project, or investment. See total return, annualized return, and how your ROI compares to common benchmarks.

ROI formula
ROI = (Net Profit ÷ Cost of Investment) × 100
Investment details ROI · Annualized · Profit/Loss
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Optional — enables annualized ROI
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Frequently asked questions
What is a good ROI? ›
A "good" ROI depends heavily on the investment type and time horizon. For stocks, the S&P 500 has historically returned about 10% annually. Real estate averages 7–10% including rental income. Business investments often target 15–30%+ to justify the risk. Savings accounts currently yield 4–5%. Always compare ROI to your specific opportunity cost — what else could you do with that money?
What is the difference between ROI and annualized ROI? ›
Total ROI measures the overall return from start to finish regardless of time. Annualized ROI (also called CAGR — Compound Annual Growth Rate) converts that return into a per-year rate, enabling fair comparison between investments held for different lengths of time. A 50% ROI over 5 years is very different from 50% in 1 year.
Does ROI account for risk? ›
Simple ROI does not account for risk — it only measures actual return. A higher-risk investment should demand a higher ROI to compensate. More advanced metrics like Sharpe ratio and risk-adjusted return factor in volatility. When comparing investments, always consider both the return and the risk level required to achieve it.
Can ROI be negative? ›
Yes — a negative ROI means the investment lost money. If you invested $10,000 and got back $8,000, your ROI is -20%. Negative ROI on individual investments is common; what matters is your portfolio's overall performance over time and whether the loss was within acceptable risk parameters.

About this ROI calculator

Our ROI calculator computes total return on investment as a percentage, your net profit or loss in dollars, and — when you provide the duration — your annualized ROI for fair comparison with other investments.

Use it to evaluate any investment: stocks, real estate, a business purchase, equipment, marketing campaigns, rental properties, or any other capital allocation decision.