How do you calculate ROI?

ROI = ((Final Value - Initial Investment) / Initial Investment) × 100. If you invested $10,000 and it's now worth $15,000, your ROI is 50%. This tells you the percentage return on your investment.

A "good" ROI depends on the investment type and risk. Stock market average is 7-10% annually. Real estate averages 8-12%. Startups target 10x or more. Any return above inflation (3-4%) preserves purchasing power.

What is annualized ROI?

Annualized ROI normalizes returns to a yearly rate, making different time periods comparable. A 50% return over 2 years is about 22% annualized. Formula: ((1 + ROI)^(1/years) - 1) × 100.

How is ROI different from ROAS?

ROI measures profit relative to total investment. ROAS (Return on Ad Spend) measures revenue relative to ad spend. ROI accounts for all costs and measures profit; ROAS only looks at revenue vs ad costs.

Should I include fees in my ROI calculation?

Yes. Include all costs: transaction fees, management fees, maintenance costs, etc. The total invested amount should reflect everything you paid. Excluding fees overstates your true ROI.

ROI Calculator

Calculate your Return on Investment instantly. See annualized ROI, payback period, and get AI-powered investment insights.

Enter Your Values

Initial Investment*

Total amount invested or spent

Final Value / Return*

Total value received or current value of investment

Time Period

months

Number of months the investment was held

Additional Costs

Fees, maintenance, or other costs incurred

Ongoing Monthly Revenue

If investment generates recurring revenue

Formula

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

Return on Investment measures the profit or loss relative to the amount invested. A 50% ROI means you made $0.50 for every $1 invested.

Return on Investment (ROI)50.0%

Strong 50% ROI — significantly outperforming most investments.

Net Profit/Loss$5,000

Total Cost$10,000

Return Ratio1.50x

Hold Period1.0 years

Annualized ROI50.0%

Avg Monthly Return$417

ROI Benchmarks

Major LossLost more than 20% of investment

< -20%

Minor LossSmall loss — may recover

-19.99% – -0.01%

Break-Even0-10% — minimal return

0% – 9.99%

Moderate10-50% — solid performance

10% – 49.99%

Strong50-100% — excellent return

50% – 99.99%

Exceptional100%+ — doubled or more

> 100%

Source: General Investment Benchmarks

How to Calculate ROI

Enter your initial investment amount
Enter the final value or total return received
Optionally add the time period for annualized ROI
Add any additional costs incurred
Add ongoing revenue if applicable
Chat with our AI Finance Analyst for investment insights

ROI Benchmarks by Investment Type

10% annually

S&P 500 (Historical)

8-12% annually

Real Estate

3-6% annually

Bonds

20%+ annually

Venture Capital Target

500%+

Marketing ROI Target

Source: Historical Market Data 2024