ROI Calculator
Measure how profitable an investment was by comparing what you gained to what you spent. Use it to evaluate stocks, marketing campaigns, real estate, or any business decision.
About this calculator
Return on Investment (ROI) expresses the profitability of an investment as a percentage of its original cost. The formula is: ROI = ((Final Value − Initial Investment) / Initial Investment) × 100. A positive ROI means you made money; a negative ROI means you lost money. ROI is dimensionless — it does not account for time, so a 50% ROI over 10 years is far less impressive than 50% over 6 months. Despite this limitation, ROI is the most widely used financial performance metric because it is simple, comparable across very different types of investments, and instantly communicates whether a decision was profitable.
How to use
Suppose you invest $2,000 in a marketing campaign and it generates $3,500 in revenue. ROI = ((3500 − 2000) / 2000) × 100 = (1500 / 2000) × 100 = 75%. Your campaign returned 75 cents of profit for every dollar spent — a strong result. Now try it with a stock: you buy shares for $10,000 and sell them for $8,500. ROI = ((8500 − 10000) / 10000) × 100 = −15%. Enter your own numbers to evaluate any investment instantly.
Frequently asked questions
What is a good ROI percentage for a business investment?
A 'good' ROI depends heavily on the industry, risk level, and time horizon involved. The S&P 500 has historically returned about 10% per year on average, so many investors use that as a benchmark for equity investments. For marketing campaigns, ROIs above 100–200% are often expected because the time frame is short. For real estate, 8–12% annual ROI is generally considered solid. Always compare ROI against the relevant benchmark and factor in risk — a higher ROI is not always better if it comes with substantially greater uncertainty.
How is ROI different from annualized return or CAGR?
Standard ROI tells you the total percentage gain or loss over the entire investment period without adjusting for how long the money was tied up. Annualized ROI and Compound Annual Growth Rate (CAGR) normalize the return to a per-year figure, making investments of different durations comparable. For example, a 100% ROI over 10 years sounds impressive but is only about 7.2% per year (CAGR). When comparing two investments with different holding periods, always convert to an annualized figure for a fair comparison.
Can ROI be used to evaluate non-financial investments like employee training?
Yes — ROI can be applied to any decision where costs and benefits can be quantified, including employee training, software implementations, and process improvements. For a training program, the initial investment is the cost of materials and lost productivity, while the final value might be estimated from increased output, lower error rates, or reduced turnover costs. The challenge is accurately estimating intangible benefits. Many organizations use a combination of hard metrics (measurable output) and soft metrics (satisfaction scores) to build a defensible ROI figure for non-financial investments.