Research-backed assumptions
Baseline returns reference Federal Reserve H.15 rates and Bureau of Labor Statistics inflation data so ROI metrics stay realistic.
Updated weekly after every FRED and BLS release.
ROI Calculator - Return on Investment Calculator
Calculate ROI for any asset including stocks, real estate, crypto, and business ventures with detailed metrics including CAGR and annualized returns.
Compliance & privacy
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Simple ROI
Basic percentage return
Annualized Return
Compound annual growth rate (CAGR)
Risk-Adjusted
Sharpe-style overview
Comparison
Compare multiple assets
Break-even
Payback period
ROI analysis workflow
Keep every investment review consistent by running the same four steps.
1. Capture real cash flows
Document the upfront spend, monthly deposits or rent, fees, taxes, and exit assumptions. The Additional costs and Annual income fields keep the forecast grounded in reality.
2. Stress-test assumptions
Adjust expected returns, holding periods, and added income to build base, optimistic, and downside scenarios. Watch how CAGR and payback shift.
3. Compare alternatives
Use the Comparison tab to stack every asset on a single table. Track simple ROI, annualized ROI, risk-adjusted returns, and payback before picking a winner.
4. Connect to other tools
Send the leading scenario to the reverse calculator to confirm deposits, then ask the AI planner for automation and follow-up reminders.
Investment details
ROI analysis results
Simple ROI
48.6%
Annualized return (CAGR)
14.1%
Net profit
$5,100.00
Payback period
5.5 years
Financial metrics
Total return:$5,100.00
Present value:$3,792.85
Internal rate of return:14.3%
Profit margin:32.7%
Risk analysis
Risk level:Medium
Risk-adjusted return:0.56
Break-even point:52.5 years
Investment growth over time
Worked example: SaaS marketing ROI at scale
We sampled a 14-month campaign to show how the calculator balances cost, attributed revenue, and risk-adjusted returns.
Inputs we audited
- Campaign
- SaaS paid social + content syndication program targeting mid-market finance teams
- Total investment
- $85,000 (ads $55k + marketing ops $30k)
- Timeline
- 14 months from first spend to contract renewals
- Attributed revenue
- $156,000 ARR-equivalent recognized within the period
- Risk assumptions
- Risk-free 4.7% (DGS3) plus 6% market premium to calculate risk-adjusted ROI
ROI outputs
- Net profit
- $71,000 after campaign + platform costs
- Simple ROI
- 83% return [(156k - 85k) / 85k]
- Annualized ROI (CAGR)
- ≈32% when normalized to a 12-month cadence
- Payback period
- 8.5 months vs. a 12-month target
Planner takeaways
- •Shift 30% of spend into the highest-ROI syndication partner once it stays above 70% for two quarters.
- •Use risk-adjusted ROI to discount low-quality pipeline and keep CAC within guardrails.
- •Export this scenario into the reverse calculator to reinvest excess profit into future goals.
Data source: FutureValueCalc internal dataset, 2024. Treasury + CPI benchmarks from FRED/BLS.
ROI case studies
Anonymous FutureValueCalc scenarios that show how ROI insights influence the next step.
Rental property vs. staying in index funds
Investor weighs buying a duplex against keeping the cash in ETFs.
- •Scenario: $120k down payment plus $8k closing costs versus leaving $120k in an index fund.
- •ROI view: After rent, maintenance, and reserves, the property posts a 42% simple ROI while the ETF projection is ~28%.
- •Insight: A 6.5-year payback window and stronger risk-adjusted return justify moving forward with the purchase.
SaaS marketing campaign
Growth team tests a $60k paid program before delaying a product release.
- •Scenario: $60k in ads plus $5k creative spend with $95k in attributed ARR.
- •ROI view: Simple ROI hits 50% and the two-year annualized return settles near 18%.
- •Insight: AI planner recommends reinvesting half the profit into onboarding and retention journeys to protect ROI.
Understanding Return on Investment (ROI)
Core ROI formulas
Simple ROI
ROI = ((Ending Value - Initial Investment) / Initial Investment) × 100Quick return calculation that ignores time.
Annualized ROI (CAGR)
CAGR = ((Ending Value / Starting Value)^(1/Years) - 1) × 100Shows the steady annual growth rate required to reach your ending value.
Total return
Total Return = Capital gains + Dividends + InterestCaptures every source of investment income.
Typical stock market returns
- S&P 500 (historical):~10% annualized
- NASDAQ:~9-11% annualized
- International equities:~7-9% annualized
- Bonds:~3-5% annualized
- REITs:~8-12% annualized
Real estate returns
- Rental properties:8-12% annualized
- House flipping:10-20% per project
- Commercial real estate:6-12% annualized
- Real estate crowdfunding:8-12% annualized
- Land investing:5-15% annualized
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 (highly volatile)
Key ROI considerations
Don't forget:
- • Taxes can trim 15-40% from returns
- • Inflation averages 2-3% per year
- • Trading fees and commissions
- • Opportunity cost of capital
Risk factors:
- • Market volatility
- • Liquidity constraints
- • Currency fluctuations
- • Regulatory changes
Frequently asked questions
What is considered a good ROI percentage?
It depends on the asset class and risk level. Historically: stock markets return 7-10% annually, real estate 8-12%, private businesses 15-25%. Any positive ROI above inflation (2-3%) preserves purchasing power.
How is ROI different from ROE and ROIC?
ROI measures the return on any investment. ROE focuses on shareholder equity, ROIC measures how efficiently a company uses invested capital, and ROAS applies specifically to advertising spend.
Should I use simple ROI or annualized ROI?
Use annualized ROI (CAGR) when comparing investments with different timeframes, evaluating long-term projects, or benchmarking against indexes. Simple ROI works for quick checks, short projects (<1 year), or one-off deals.
How do I factor risk into ROI?
Risk-adjusted returns use tools such as the Sharpe ratio ((Return - Risk-free rate) / Std Dev), Sortino ratio, alpha versus a benchmark, or a required risk premium. Our calculator includes basic risk adjustments.
Benchmarks behind our ROI calculator
Every public dataset we cite is linked below so you can replicate the math.
- View source
Federal Reserve H.15 (DGS3)
Risk-free Treasury rates anchor discount factors and hurdle rates.
- View source
BLS Producer Price Index: Advertising services
Keeps campaign cost assumptions aligned with inflation.
- View source
Gartner CMO Spend Survey
Benchmarks marketing mix and payback expectations for SaaS teams.
Cadence: refreshed weekly after FRED/BLS updates and each Gartner survey release.
Continue optimizing ROI
Hand this analysis to other tools so insights turn into action.
Reverse Calculator
Allocate surplus profit toward future savings targets.
AI Investment Planner
Let AI produce optimistic vs. conservative reinvestment scenarios.
ROI calculation guide
Step-by-step documentation of formulas, fallbacks, and due diligence.
Important ROI disclaimer
Numbers shown here are illustrative and not individualized financial advice.
- •ROI, CAGR, and risk-adjusted returns rely on user-supplied data. Always verify formulas with your finance team.
- •Past ROI does not guarantee future results. Market shifts or operational changes can materially impact outcomes.
- •Consult professional advisors and review our site-wide disclaimer before committing capital.
Link ROI results with other planners
Push forecasts into savings and AI calculators so every project has follow-up tasks, reminders, and automation.