ROI Calculator — Measure Your Investment Performance
Free ROI calculator to calculate return on investment for any business project or financial investment. Compare ROI across different opportunities.
Return on Investment is the universal metric for measuring the profitability of any investment whether it is a business project real estate purchase stock market investment marketing campaign or education. ROI tells you how much profit you earned for every dollar or rupee invested. A 50% ROI means you earned Rs 50 for every Rs 100 invested. Understanding ROI helps you allocate your capital to the highest-returning opportunities.
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Key Information
| Parameter | Details |
|---|---|
| ROI Formula | (Gain - Cost) / Cost x 100 |
| Good Business ROI | 15% - 30% annually |
| Stock Market Average ROI | 10% per year (S&P 500 historical) |
| Real Estate Average ROI | 8% - 12% (including appreciation + rental) |
Frequently Asked Questions
How is ROI calculated?
ROI = (Net Profit / Cost of Investment) x 100. For example if you invested $10000 in stocks and sold them for $13000 your ROI = (13000 - 10000) / 10000 x 100 = 30%. This simple formula works for any investment but does not account for time — a 30% return in 1 year is much better than 30% over 5 years. Use annualized ROI for time-adjusted comparisons.
What is a good ROI?
A good ROI depends on the context and risk. For stock market investments 7-10% annually is considered good (matching the S&P 500 average). For real estate 8-12% including rental income and appreciation is good. For business investments 15-30% ROI is typically expected to justify the effort and risk. Any ROI above the risk-free rate (currently 4-5% for US Treasury bonds) adds value.
How does ROI differ from CAGR?
ROI gives you the total percentage return without considering time while CAGR (Compound Annual Growth Rate) gives you the annualized return accounting for compounding. A 100% ROI over 7 years = 10.4% CAGR. Always use CAGR when comparing investments held for different time periods. ROI is better for quick assessment while CAGR is better for detailed comparison.
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Last updated: 24 March 2026