Calculate return on investment (ROI) for business decisions, marketing campaigns, real estate, and stock investments. Get detailed ROI analysis with profit calculations and investment comparisons.
Amount you invested
Current or final value
Investment duration
A good ROI depends on the investment type and risk. Generally, 7-10% annually is considered good for stocks, 8-12% for real estate, and 15-25% for small businesses. Higher returns typically come with higher risk.
ROI = (Final Value - Initial Investment) ÷ Initial Investment × 100. For example, if you invest $1,000 and it becomes $1,200, your ROI is (1,200 - 1,000) ÷ 1,000 × 100 = 20%.
ROI is the total return over the entire period. Annualized ROI converts this to a yearly rate, making it easier to compare investments with different time periods. Use annualized ROI for comparing investments of different durations.
Both matter! ROI percentage shows efficiency (how much return per dollar invested), while total profit shows absolute gains. A 50% ROI on $100 gives $50 profit, but 10% ROI on $10,000 gives $1,000 profit.
Key strategies: diversify your portfolio, reinvest profits for compound growth, cut losing investments quickly, focus on your expertise areas, consider tax-efficient strategies, and regularly review and rebalance your investments.