What is a good ROI percentage?

A good ROI depends on the investment type and risk. Stock market average is 10% annually. Real estate typically returns 8-12%. A 15%+ annual return is excellent. Riskier investments should offer higher potential returns to compensate for increased risk.

What is the difference between ROI and annualized return?

ROI is total return regardless of time. Annualized return converts total ROI to a yearly rate for comparison. A 50% ROI over 5 years equals about 8.4% annualized. Annualized returns help compare investments held for different periods.

How do I calculate ROI including fees?

Subtract all costs from your final value before calculating. If you invested $10,000, paid $500 in fees, and have $13,000 now: ($13,000 - $10,000 - $500) / $10,000 = 25% true ROI. Always account for fees, commissions, and taxes.

Yes, negative ROI means you lost money. If $10,000 investment is now worth $8,000: ($8,000 - $10,000) / $10,000 = -20% ROI. Negative returns happen during market downturns or poor investment choices. Long-term investing reduces negative return risk.

How do I compare ROI across different investments?

Convert all returns to annualized percentages for fair comparison. Also consider risk level, liquidity, and time horizon. A 6% guaranteed CD return may be preferable to a potential 10% stock return for some investors.

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ROI Calculator

Calculate ROI for investments, projects, or campaigns

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Last verified: February 2026Accuracy tested

Calculated in your browser — we never store your dataIndustry-standard financial formulas

Initial Investment ($)

Final Value ($)

Time Period (years) — optional

Total Return on Investment

+50.00%

Net {type}: ${amount}

This calculator provides estimates for informational purposes only. Actual results may vary based on lender terms, fees, and tax situations. Consult a financial advisor for personalized advice.

Investment Summary

Initial Investment$10,000

Final Value$15,000

Net Change+$5,000

Performance Metrics

Total ROI+50.00%

Annualized ROI+14.47%

Time Period3 years

Visual Comparison

Initial Investment$10,000

Final Value$15,000

Sources & Methodology

Formula: ROI = ((Final Value - Initial Investment) / Initial Investment) × 100

Return on investment percentage

Source: Standard financial ROI formula

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calc.alsoTry:Compound Interest Retirement Savings Goal Break-Even

How to Use the ROI Calculator

Calculate return on investment percentage, net profit, and annualized returns. Essential for evaluating investment performance and comparing opportunities. For long-term growth projections, try our compound interest calculator.

ROI Formula

ROI = (Final Value - Initial Investment) / Initial Investment × 100

For time-based comparison, we also calculate annualized ROI using the compound annual growth rate (CAGR) formula.

Interpreting Results

Positive ROI = profit; negative ROI = loss
Compare annualized ROI across investments with different time periods
Higher returns often come with higher risk
Consider opportunity cost—what could the money have earned elsewhere?

Beyond Simple ROI

For comprehensive investment analysis, also consider factors like risk-adjusted returns, liquidity, tax implications, and diversification benefits.

Related Investment Calculators

Plan your financial future with our retirement calculator. Understand how inflation affects your real returns. For real estate investments, use our mortgage calculator to analyze property purchases. Compare percentage changes across different investments.

Frequently Asked Questions

ROI = (Current Value - Initial Investment) / Initial Investment x 100. If you invested $10,000 and it is now worth $13,000: ($13,000 - $10,000) / $10,000 x 100 = 30% ROI. This measures total gain as a percentage of your original investment.