Business 4.8 · 76K/mo
ROI Calculator
Calculate return on investment percentage for any business or personal investment.
Return on Investment Explained
ROI is one of the most widely used financial metrics for evaluating the profitability of an investment. It measures the return relative to the cost of the investment. A positive ROI means the investment generated profit; a negative ROI means a loss. When comparing investments, annualized ROI provides a fair comparison across different time periods.
Frequently Asked Questions
What is a good ROI?
A good ROI depends on the investment type. Stock market average is ~10%/year. Real estate typically returns 8-12%. Any ROI above your cost of capital is generally positive.
What is the difference between ROI and profit margin?
ROI measures return relative to investment cost. Profit margin measures profit relative to revenue. Both are important business metrics.