ROI Calculator

ROI = (Final Value − Initial Investment) ÷ Initial Investment × 100. Example: invest $10,000 and get back $15,000 → ROI = ($15,000 − $10,000) ÷ $10,000 × 100 = 50%. If you held it for more than a year, annualized ROI adjusts for the time period using compound math.

A 'good' ROI depends on risk and industry. Stock market average is ~7-10% annually. Real estate averages ~8-12%. Small business investments typically target 15-30%+ to justify the risk and time. Marketing ROI of 5:1 (400%) or higher is considered strong. Below 2:1 (100%), most campaigns aren't profitable after overhead.

Annualized ROI converts any return into an equivalent yearly rate, so you can compare investments held for different time periods. Formula: ((1 + ROI) ^ (12/months) − 1) × 100. A 50% ROI over 24 months = ~22.5% annualized ROI.

Yes. If your final value is less than your initial investment, ROI is negative. A -20% ROI means you lost 20% of your investment. Track negative ROI on projects to identify which investments consistently underperform.

ROI measures return relative to the total investment cost. ROE (return on equity) measures return relative to shareholders' equity in a business — it factors in debt. For personal investments or marketing decisions, ROI is the right metric. For analyzing overall business performance, ROE is more relevant.

Marketing ROI = (Revenue from campaign − Campaign cost) ÷ Campaign cost × 100. Include all campaign costs: ad spend, creative, agency fees, and your time. If a $5,000 campaign generated $25,000 in revenue with $15,000 in associated COGS, net profit is $10,000 and marketing ROI is 100%.

ROI is a simple ratio — profit divided by cost. NPV (net present value) discounts future cash flows back to today's dollars to account for the time value of money. For quick comparisons and marketing decisions, ROI is easier. For large capital investments or multi-year projects, NPV gives a more accurate picture.

A 5:1 ROI means you earned $5 for every $1 spent — a 400% return (since ROI = return ÷ investment − 1). In marketing, a 5:1 ratio ($5 revenue per $1 spent) is considered good for most businesses. A 10:1 ratio is exceptional. Below 2:1, most campaigns are unprofitable after factoring in overhead.