ROI Calculator — Return on Investment Analysis
Calculate total ROI, annualized CAGR, and payback period for any investment — stocks, real estate, business projects, or marketing spend.
ROI Calculator
Calculate return on investment and analyze investment performance
Investment Details
Original amount invested
Current market value or sale price
Additional capital added
Total income received
Investment duration
ROI Formulas & Calculations
Basic ROI
Measures the percentage return on your investment. Best for comparing investments of the same duration. Does not account for the time value of money.
CAGR (Annualized Return)
Compound Annual Growth Rate — shows the steady annual rate that would produce the same total return. Essential for comparing multi-year investments of different durations.
Investment ROI Benchmarks (2025)
| Asset Class | Avg Annual Return | Risk Level |
|---|---|---|
| S&P 500 (historical avg) | ~10% | Moderate |
| US Bonds (10-year Treasury) | 3-5% | Low |
| Real Estate (avg) | 8-12% | Moderate |
| High-yield Savings Account | 4-5% | Very Low |
| Small Business | 20-35% | High |
| Cryptocurrency (Bitcoin avg) | Volatile | Very High |
Frequently Asked Questions
What is ROI and how is it calculated?
ROI (Return on Investment) measures the profitability of an investment relative to its cost. Formula: ROI = ((Final Value − Initial Cost) / Initial Cost) × 100%. For example, investing $10,000 that grows to $14,500 gives an ROI of 45%. ROI does not account for time, which is why CAGR is often more useful for comparing investments of different durations.
What is a good ROI?
A "good" ROI depends heavily on the asset class and risk level. The S&P 500 has historically returned ~10% annually (7% inflation-adjusted). Real estate typically returns 8-12% annually including appreciation and rental income. Individual stocks can return much higher but with greater risk. A general rule: your ROI should exceed inflation plus a risk premium.
What is the difference between ROI and CAGR?
ROI measures total return without considering time. CAGR (Compound Annual Growth Rate) measures the annual growth rate that would produce the same total return. CAGR = ((Final Value / Initial Value)^(1/years) - 1) × 100%. CAGR is more useful when comparing investments held for different time periods.
How do I calculate ROI for real estate?
Real estate ROI = (Annual Rental Income + Appreciation - Expenses) / Total Investment × 100%. Total investment includes down payment, closing costs, and renovation. Expenses include mortgage interest, property taxes, insurance, maintenance, and vacancy. Most investors target a cap rate of 5-10% on rental properties.
How do I calculate ROI for a business investment?
Business ROI considers both direct returns and indirect benefits. Calculate net profit generated by the investment, divide by cost of investment, multiply by 100. For marketing ROI: (Revenue Generated - Marketing Cost) / Marketing Cost × 100%. Always include all implementation costs, not just the direct investment amount.