What is a good ROI?
A positive ROI indicates a profitable return; benchmarks vary by industry, with the stock market historically averaging approximately 7% to 10% annualized ROI before inflation.
How to Use ROI (Return on Investment) Calculator
Step 1: Investment Cost
Enter total amount invested (expenses/capital).
Step 2: Revenue Returned
Enter final gross revenue or ending value.
Step 3: Investment Duration
Optionally enter holding time in years to compute annualized return.
Key Features & Capabilities
- Net Profit = Revenue - Cost
- Total ROI % = (Net Profit / Cost) * 100
- Annualized Compound ROI calculation
Frequently Asked Questions
How is ROI calculated?
ROI = ((Final Value - Initial Cost) / Initial Cost) × 100. For instance, a $1,000 investment returning $1,500 has an ROI of 50%.
Related Tools
- ROAS (Return on Ad Spend) Calculator — Calculate Return on Ad Spend for marketing campaigns and break-even ad target.
- Profit Margin Calculator — Calculate Gross Profit Margin, Net Margin, and Profit Markup from cost and revenue.
- Break-Even Point Calculator — Calculate the exact number of units and sales revenue needed to cover all fixed and variable costs.