ROI Calculator (Return on Investment)
Calculate ROI, annualised return, net profit, and payback period for any investment or business decision.
✔ ROI + Payback📊 Business Finance
📊 ROI Calculator (Return on Investment)
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ROI — The Business Fundamental
ROI (Return on Investment) measures gain from an investment relative to its cost. It is the most universally used investment metric. A positive ROI means you earned more than you invested; negative ROI means a loss.
📐 ROI Formula
ROI = (Net Profit ÷ Investment) × 100%
NetTotal return − Initial investment
Annual= ((1+ROI)^(1/years)) − 1
Frequently Asked Questions
Depends on the investment: stocks average 7–10%/year; business investments target 15–30%+; real estate 8–12%. Always compare against opportunity cost — the return you could earn on the best alternative investment.
ROI is a simple total/annual return percentage. IRR (Internal Rate of Return) accounts for the timing of cash flows, making it more accurate for investments with irregular cash flows. For simple lump-sum investments, ROI is sufficient.
ROI = (Net Profit ÷ Cost of Investment) × 100. If you invest $10,000 in marketing and generate $15,000 in profit: ROI = ($15,000 − $10,000) ÷ $10,000 × 100 = 50%. ROI does not account for time — a 50% ROI over 5 years is much less impressive than 50% in 6 months. Use annualized ROI for comparisons.
The S&P 500 historically returns 7–10% annually, so any business ROI below that raises the question of whether you'd be better off investing passively. A good small business ROI is typically 15–30%+ annually. Retail and restaurants often operate at lower ROIs due to high costs; service businesses and SaaS can achieve 30–100%+.
⚠️ Disclaimer Estimates only. Not financial or legal advice.