ROI Calculator
Calculate return on investment for any project or asset
Results are estimates for informational purposes only and do not constitute financial, legal, or medical advice.
ROI (Return on Investment) is the most widely used metric to evaluate the profitability of an investment. Enter the amount you invested and the final value to instantly calculate ROI percentage, net profit or loss, and investment multiplier. Optionally enter the time period to see the annualized (CAGR) return.
ROI works across all asset classes: stocks, real estate, bonds, business projects, or any other investment. A positive ROI means profit; a negative ROI means a loss. To compare investments held for different periods, always use the annualized (CAGR) figure — simple ROI ignores the time dimension.
Frequently Asked Questions
What is ROI?
ROI (Return on Investment) is a percentage that shows how much profit or loss an investment generated relative to its cost. Formula: ROI = (Final Value − Initial Investment) / Initial Investment × 100%.
What is annualized ROI (CAGR)?
Annualized ROI, also known as CAGR (Compound Annual Growth Rate), shows the equivalent annual return if the investment grew at a steady rate. It is essential for comparing investments held over different time periods. Formula: CAGR = (Final/Initial)^(1/years) − 1.
What is the investment multiplier?
The multiplier shows how many times your money grew. For example, a multiplier of 2.5× means your investment grew 2.5 times. It equals Final Value ÷ Initial Investment.
Can ROI be negative?
Yes. A negative ROI means you lost money. For example, investing $10,000 and receiving back $7,000 results in an ROI of −30%.
What is a good ROI?
It depends on the asset class. The S&P 500 has historically returned ~10% per year. Real estate typically 4–8% annually. A savings account 2–5%. Benchmark against the average for the same category and risk level.
What is the difference between ROI and CAGR?
ROI shows the total return regardless of time — useful for a single transaction. CAGR annualizes that return, making it comparable to other time-based metrics like bank interest rates. For any investment held more than a year, always compare using CAGR.
How do I calculate ROI for real estate?
For property: ROI = (Net Rental Income + Capital Gain) / Total Investment × 100%. Total investment should include purchase price, taxes, agent fees, and renovation costs. Net rental income is annual rent minus operating expenses, insurance, and vacancy.
What is the difference between ROI and profit margin?
ROI measures return relative to the initial investment. Profit margin measures profit relative to revenue. ROI = (Profit / Cost) × 100%. Margin = (Profit / Revenue) × 100%. A business can have high margins but low ROI if the required capital is large.
How is ROI used in marketing?
Marketing ROI compares the revenue generated from a campaign to its cost. For example, spending €1,000 on ads that generate €4,000 in sales revenue gives a marketing ROI of 300%. Most marketers target a 5:1 revenue-to-spend ratio (400% ROI) as the minimum threshold.
What ROI should I expect from stock market investing?
Historically, diversified global stock indices (MSCI World, S&P 500) have returned 7–10% per year on average over long periods (20+ years), adjusted for inflation roughly 5–7%. Short-term returns vary widely and can be negative. Individual stocks carry higher volatility.