ROI Calculator
Calculate Return on Investment, annualized returns (CAGR), net profit, and investment multiples with customizable holding durations and scenario sensitivity models.
Total percentage return
Final return minus total costs
Compounded annual growth rate
Final value / total invested
Understanding Return on Investment (ROI)
Return on Investment is the universal profitability metric used by business leaders, startup founders, and retail investors to gauge financial performance. By weighing net profits directly against capital expenditure, it provides clear visibility into capital efficiency.
Key Metric Formulations
Industry Use Cases
- ✓Marketing & Advertising Campaigns
Evaluate Google Ads, Facebook campaigns, and influencer partnerships by comparing ad spend to new gross customer revenue.
- ✓Real Estate & Property Flipping
Factor in acquisition costs, renovation expenses, and sale prices to determine net yield and annualized cash-on-cash return.
- ✓SaaS Software & Technology Upgrades
Justify enterprise tooling costs against operational efficiency gains, reduced headcount hours, or new subscriber ARR.
- ✓Equities, Crypto & Alternative Assets
Quantify total capital multiple and compounded annual growth rate (CAGR) across single stocks, index funds, and crypto tokens.
Key Analysis Features
Simple & Annualized ROI (CAGR)
See both absolute percentage ROI and time-weighted annualized return so you can compare short-term and multi-year ventures fairly.
Ongoing Cost Accounting
Include maintenance, commissions, management fees, or advertising expenses alongside your upfront principal investment.
Sensitivity Scenario Planning
Automatically generate conservative (-20%) and optimistic (+20%) financial projection benchmarks.
One-Click Report Export
Copy formatted executive summaries or export spreadsheet CSVs for investor decks and pitch reviews.
Frequently Asked Questions
How is ROI (Return on Investment) calculated?
The standard formula for ROI is: ROI (%) = [(Final Value - Total Cost) / Total Cost] * 100. For example, if you invest $10,000 and return $15,000, your net profit is $5,000 and your ROI is ($5,000 / $10,000) * 100 = 50%.
What is the difference between simple ROI and Annualized ROI?
Simple ROI measures total percentage gain regardless of time. A 100% gain over 10 years is very different from 100% in 1 year. Annualized ROI (CAGR) calculates the geometric average annual rate: Annualized ROI = [(Ending Value / Total Cost)^(1 / Years)] - 1. This enables apples-to-apples comparison across investments with different durations.
What is considered a good ROI?
In the stock market, historical benchmark returns for the S&P 500 average around 8%–10% annually. For private business acquisitions or venture capital, target ROIs are typically 20% to 35%+. For marketing campaigns, a common benchmark is a 5:1 revenue-to-spend ratio (400% ROI).
Can ROI be negative?
Yes. If the final value of the investment is lower than the total capital invested, the net profit is negative, resulting in a negative percentage ROI (a capital loss).
How does ROI differ from Profit Margin?
ROI measures the gain relative to what you invested: (Net Profit / Total Cost). Profit Margin measures the gain relative to the gross revenue generated: (Net Profit / Gross Revenue).
Financial Calculators
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