Calculate the return on investment (ROI) for any project, campaign, or purchase. Enter your initial investment and the return you received to instantly see your ROI percentage, net profit, and whether the investment was profitable.
Used by business owners, marketers, investors, and entrepreneurs to evaluate the profitability of any decision — from marketing campaigns to real estate to stock investments.
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Enter your investment amount and return value above.
ROI breakdown
ROI
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Net profit
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Annualized ROI
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How to Calculate ROI
ROI (Return on Investment) measures how much profit you made relative to your investment cost. It's one of the most widely used financial metrics for evaluating the efficiency of an investment.
Formula: ROI = ((Return − Cost) ÷ Cost) × 100 Example: Invested $5,000, received $7,500 ROI = (($7,500 − $5,000) ÷ $5,000) × 100 = 50%
What is a good ROI?
A "good" ROI depends on the type of investment and timeframe. Stock market: 7-10% annually is considered good. Real estate: 8-12% annually. Marketing campaigns: 5:1 ratio ($5 return per $1 spent) is considered good. For a business investment, anything above your cost of capital is positive.
ROI vs other metrics
ROI doesn't account for time — a 50% ROI over 10 years is less impressive than 50% in 1 year. That's why annualized ROI (also called CAGR) is more useful for comparing investments of different durations. This calculator shows both.
Frequently Asked Questions
What is ROI?
ROI (Return on Investment) is a performance metric used to evaluate the efficiency of an investment. It's expressed as a percentage and calculated as: ((Return − Cost) ÷ Cost) × 100. A positive ROI means you made money; negative means you lost money.
What is a good ROI percentage?
It depends on the investment type. For stocks, 7-10% annually is the historical average. For real estate, 8-12%. For marketing, a 5:1 ROI ($5 earned per $1 spent) is considered good. For business investments, compare ROI to your cost of capital — if ROI exceeds it, the investment is worthwhile.
What is annualized ROI?
Annualized ROI adjusts the return to show what the yearly rate would be, making it easier to compare investments of different time periods. Formula: ((1 + ROI)^(12/months) − 1) × 100. A 50% ROI over 2 years = 22.5% annualized.
Can ROI be negative?
Yes. A negative ROI means you lost money on the investment. For example, if you invested $1,000 and got back $800, your ROI is −20%. Negative ROI helps identify bad investments or unsuccessful campaigns.