ROI is Return on Investment — a percentage showing profit or loss relative to your initial investment. Formula: ROI = ((Final Value − Investment) ÷ Investment) × 100.

10–12% annual ROI is considered good for stock market investments. Higher ROI usually comes with higher risk.

ROI Calculator – Calculate Return on Investment Online

Q: What is the difference between ROI and CAGR?

ROI is total return over the whole period. CAGR is the annualized equivalent yearly return, useful for comparing investments held for different durations.

Q: Is this ROI Calculator free?

Yes, completely free with no signup required.

ROI Calculator

Calculate Return on Investment instantly. Basic ROI, annualized returns, and multi-investment comparison — all in one tool.

Enter Investment Details

Initial InvestmentFinal Value / Return

💡 Enter the total value at end (not just the profit)

Results

Enter values and click Calculate ROI.

ROI Benchmark Guide

Below 0%Loss

0% – 10%Low return (savings/FD)

10% – 25%Moderate (stocks/bonds)

25% – 50%Good return

50%+Excellent return

What is ROI and Why Does It Matter?

Return on Investment (ROI) is one of the most important metrics in finance and business. It measures how much profit or loss you made relative to what you invested. Whether you are evaluating a stock, a business idea, a marketing campaign, or real estate — ROI tells you if it was worth it.

Our ROI Calculator goes beyond the basic formula. Use Basic ROI for quick calculations, Annualized ROI (CAGR) to understand yearly performance, or the Comparison tool to rank multiple investments side by side and find your best performer.

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Basic ROI

Calculate net profit, ROI percentage, and investment multiple instantly. Works for any investment type.

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Annualized ROI

Uses the CAGR formula to show your average yearly return. Compare investments held for different time periods fairly.

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Comparison Tool

Compare up to 6 investments at once, ranked by ROI. Instantly see which investment performed best.

ROI Formulas Explained

The exact math behind every calculation

Core Formulas

ROI = ((Final Value − Investment) ÷ Investment) × 100
Net Profit = Final Value − Initial Investment
CAGR = (Final Value ÷ Initial Value)^(1÷Years) − 1

ROI expressed as percentageCAGR = Annualized ROI

Basic ROI vs Annualized ROI

Basic ROI tells you the total return over the entire investment period. Annualized ROI (CAGR) tells you the equivalent yearly return — essential for comparing investments held for different time periods.

Example — Basic ROI

Invest $10,000 → get back $15,000. ROI = (15000−10000) ÷ 10000 × 100 = 50%

Example — Annualized ROI (CAGR)

Same investment over 5 years. CAGR = (15000÷10000)^(1÷5) − 1 = 8.45% per year

ROI Benchmarks by Asset Class

Asset Class	Avg Annual ROI	Risk Level
Savings Account	3–6%	Very Low
Government Bonds	5–8%	Low
Real Estate	8–12%	Medium
Stock Market (Index)	10–12%	Medium
Individual Stocks	Varies	High
Crypto	Highly variable	Very High
Startup Investment	20%+ or loss	Very High

Who Uses This ROI Calculator?

📈 Investors

Calculate and compare ROI across stocks, mutual funds, real estate and fixed deposits. Use annualized ROI to fairly compare investments held for different durations.

🏢 Business Owners

Evaluate the profitability of a business decision, equipment purchase, or expansion. Calculate whether the return justifies the capital spent.

📣 Marketers

Measure campaign ROI by comparing ad spend to revenue generated. Identify which marketing channels deliver the best return on every dollar spent.

🏠 Real Estate

Calculate ROI on property investments by comparing purchase price to sale value or rental income. Use CAGR to understand yearly appreciation rates.

ROI Calculator FAQ

What is ROI?

ROI (Return on Investment) is a percentage that shows how much profit or loss you made relative to your initial investment. Formula: ROI = ((Final Value − Investment) ÷ Investment) × 100.

What is the difference between ROI and CAGR?

ROI is the total return over the entire period. CAGR (Compound Annual Growth Rate) is the annualized version — it shows the equivalent yearly return. Use CAGR to compare investments held for different time periods.

What is a good ROI?

It depends on the asset class and risk level. A 10–12% annual ROI is considered good for stock market investments. Real estate typically returns 8–12% annually. Higher ROI usually comes with higher risk.

What does investment multiple mean?

Investment multiple (also called MOIC — Multiple on Invested Capital) shows how many times your money grew. A 2x multiple means you doubled your money. A 0.5x multiple means you lost half.

Can ROI be negative?

Yes. A negative ROI means you lost money. For example, investing $10,000 and getting back $7,000 gives an ROI of −30%.

Is this ROI Calculator free?

Yes, completely free with no signup or registration required.