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ROI Calculator

Calculate return on investment for any asset. Compare stocks, real estate, business ventures, and more with our comprehensive ROI analysis tool.

Simple ROI
Basic return %
Annualized
CAGR calculation
Risk-Adjusted
Sharpe ratio
Comparison
Multiple assets
Break-Even
Payback period

Investment Details

ROI Analysis Results

Simple ROI

48.57%

Annualized (CAGR)

14.11%

Net Profit

$5,100

Payback Period

5.5 yrs

Financial Metrics

Total Return:$5,100
Present Value:$3,793
IRR:14.32%
Profit Margin:32.69%

Risk Analysis

Risk Level:medium
Risk-Adjusted Return:0.56
Break-Even Point:52.5 years

Investment Growth Over Time

Understanding Return on Investment (ROI)

Essential ROI Formulas

Simple ROI

ROI = ((Final Value - Initial Investment) / Initial Investment) × 100

Basic return calculation without considering time period.

Annualized ROI (CAGR)

CAGR = ((Final Value / Initial Value)^(1/Years) - 1) × 100

Compound Annual Growth Rate - shows consistent yearly return.

Total Return

Total Return = Capital Gains + Dividends + Interest

Includes all forms of investment income.

Typical Stock Market Returns

  • S&P 500 (Historical):~10% annually
  • NASDAQ:~9-11% annually
  • International Stocks:~7-9% annually
  • Bonds:~3-5% annually
  • REITs:~8-12% annually

Real Estate Returns

  • Rental Properties:8-12% annually
  • House Flipping:10-20% per flip
  • Commercial Real Estate:6-12% annually
  • Real Estate Crowdfunding:8-12% annually
  • Land Investment:5-15% annually

Risk-Return Spectrum

Low Risk
Savings (0.5-2%) • CDs (2-3%) • Bonds (3-5%)
Medium Risk
Index Funds (7-10%) • REITs (8-12%)
High Risk
Growth Stocks (10-15%) • Crypto (Volatile)

Important ROI Considerations

Don't Forget:

  • • Taxes can reduce returns by 15-40%
  • • Inflation averages 2-3% annually
  • • Transaction fees and commissions
  • • Opportunity cost of capital

Risk Factors:

  • • Market volatility
  • • Liquidity constraints
  • • Currency fluctuations
  • • Regulatory changes

Frequently Asked Questions

What is a good ROI percentage?

A "good" ROI depends on the investment type and risk level. Generally: • Stock market: 7-10% annually is considered good • Real estate: 8-12% is typical • Business ventures: 15-25% or higher • Any positive ROI that beats inflation (2-3%) preserves purchasing power

How is ROI different from ROE and ROIC?

• ROI (Return on Investment): General measure for any investment • ROE (Return on Equity): Specific to shareholder equity in companies • ROIC (Return on Invested Capital): Measures company efficiency using investor capital • ROAS (Return on Ad Spend): Specific to marketing investments

Should I use simple or annualized ROI?

Use annualized ROI (CAGR) when: • Comparing investments with different time periods • Evaluating long-term investments • Benchmarking against market indices Use simple ROI for: • Quick calculations • Short-term investments (less than 1 year) • One-time projects

How do I account for risk in ROI calculations?

Risk-adjusted returns can be calculated using: • Sharpe Ratio: (Return - Risk-free rate) / Standard deviation • Sortino Ratio: Focuses only on downside volatility • Alpha: Excess return vs benchmark • Risk premium: Additional return for taking extra risk Our calculator includes basic risk adjustment options.