ROI Calculator

Measure Your Investment Returns

Calculate ROI percentage, net profit, and annualized return for any investment. Compare your results against common benchmarks.

Investment Details

$

Amount you originally invested

$

Current or projected value

years

How long you held the investment

Example Scenarios

ROI

+50.00%

📈

Net Profit

+$5,000.00

💰

Annualized ROI

+14.47%

📅

Total Return

$15,000.00

🎯

Investment Breakdown

Initial Investment$10,000.00
Profit / Loss+$5,000.00

Benchmark Comparison

Savings Account (2%)$10,612.08
S&P 500 Avg (10%)$13,310.00
Your Investment$15,000.00

What is Return on Investment (ROI)?

Return on Investment (ROI) is a performance metric used to evaluate the efficiency or profitability of an investment. It compares the gain or loss from an investment relative to its cost, expressed as a percentage.

ROI = ((Final Value − Initial Investment) / Initial Investment) × 100

ROI Benchmarks by Asset Class

Asset ClassAvg. Annual ROIRisk LevelNotes
S&P 500 Index~10%MediumHistorical average since 1957
Real Estate8–12%MediumVaries by location and type
Bonds (10yr US)3–5%LowGovernment bonds
High-Yield Savings4–5%Very LowFDIC insured
Crypto (Bitcoin)VariesVery HighHighly volatile

Frequently Asked Questions

What is ROI?

ROI (Return on Investment) measures the profitability of an investment relative to its cost. It is expressed as a percentage and is one of the most widely used metrics in finance.

What is the ROI formula?

ROI = ((Final Value − Initial Investment) / Initial Investment) × 100. A positive ROI means you made a profit; negative means a loss.

What is a good ROI?

A "good" ROI depends on the investment type and time period. The S&P 500 averages ~10% annually. Real estate averages 8–12%. Savings accounts offer 3–5%. Any ROI above your cost of capital is generally positive.

What is annualized ROI?

Annualized ROI (CAGR) normalizes returns over multiple years, making it easy to compare investments held for different durations. Formula: ((Final/Initial)^(1/years) − 1) × 100.

What is the difference between ROI and CAGR?

ROI measures total return over the entire period. CAGR (Compound Annual Growth Rate) measures the annual growth rate assuming compounding, making it better for comparing multi-year investments.

Can ROI be negative?

Yes. A negative ROI means the investment lost value. For example, investing $10,000 and getting back $8,000 gives an ROI of −20%.