ROI Calculator
Calculate return on investment for your projects.
Online ROI calculator: measure your investment returns
ROI (Return on Investment) is the most fundamental metric for evaluating whether an investment is worthwhile. A positive ROI means benefits, while a negative ROI indicates losses.
Simple ROI has a limitation: it doesn't consider time. That's why our calculator includes annualized ROI (CAGR), which normalizes the return to an annual basis, allowing fair comparison of investments with different durations.
Practical examples include: evaluating the return on advertising campaigns, analyzing real estate investment performance, or comparing different investment funds. The key is to include all associated costs for an accurate calculation.
Frequently asked questions
What is a good ROI?
It depends on the type of investment and the risk involved. In the stock market, an annualized return of 7-10% is considered historically average for the S&P 500. In real estate, an annual ROI of 8-12% is attractive. In digital marketing, an ROI of 200% or more (for every $1 spent, generating $3 or more) is considered excellent. Higher-risk investments should offer higher potential ROI to justify that risk.
What is the difference between ROI and annualized ROI?
Simple ROI shows the total return regardless of time. Annualized ROI (also called CAGR) normalizes that return to an annual basis. For example, if your investment grew 100% in 5 years, your ROI is 100%, but your annualized ROI is only 14.87% per year. This allows you to fairly compare with other investments of different duration.
Does ROI consider inflation?
No, the ROI calculated here is nominal (not adjusted for inflation). To get the real ROI, you need to subtract the period's inflation rate. If your investment generated a 10% ROI but inflation was 4%, your real ROI is approximately 6%. This is especially important for long-term investments where cumulative inflation can be significant.
Want to learn more? Read our complete guide →