ROI Calculator
Calculate return on investment (ROI), total gain or loss, and annualized ROI for any investment. Covers stocks, real estate, business projects, and marketing.
Used to calculate annualized ROI. Leave at 1 for a single-period return.
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Frequently asked questions
What is a good ROI?
It depends on the asset class and time horizon. S&P 500: historical average ~10%/year before inflation. Real estate: typically 8-12% total return including appreciation and rental yield. High-yield savings (2024): 4-5%. Marketing/advertising ROI: 5:1 ($5 return per $1 spent) is often cited as a solid benchmark. Higher expected returns generally come with higher risk.
What is the difference between ROI and IRR?
ROI measures total return as a percentage without accounting for the timing of cash flows. IRR (Internal Rate of Return) is the annualized rate that makes the net present value of all cash flows equal to zero — it accounts for when money enters and exits. ROI is simpler and works for single-period investments. IRR is better for comparing projects with different durations and multiple cash flows.
How do I calculate ROI on real estate?
Total ROI = (Net Profit / Total Investment) x 100. Net Profit includes appreciation (sale price - purchase price) plus rental income minus operating expenses (repairs, taxes, insurance, management fees, vacancy). Total Investment includes down payment, closing costs, and capital improvements. Also useful: Cash-on-Cash Return (annual net cash flow / cash invested) and Cap Rate (NOI / purchase price).