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ROI Calculator

Calculate ROI percentage and CAGR with benchmark comparisons against S&P 500 and market averages.

Formula verified by CalcPro.pro Editorial TeamLast updated May 2025

Investment Details

About This Calculator

ROI (Return on Investment) is the most universally used metric for measuring investment performance. It expresses the net profit or loss as a percentage of the original investment. This calculator also computes CAGR (Compound Annual Growth Rate) when you provide the investment duration — giving you a time-adjusted performance metric that is far more useful for comparing investments of different durations.

How to Use This Calculator

  1. 1Select your currency
  2. 2Enter the total amount you invested
  3. 3Enter the total amount returned (current value or sale proceeds)
  4. 4Optionally enter the investment duration in years to calculate CAGR
  5. 5Click Calculate

Formula Used

ROI = (Return − Investment) / Investment × 100 | CAGR = (Return / Investment)^(1/Years) − 1

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FAQ

Frequently Asked Questions

Common questions about the roi calculator answered.

What is a good ROI?+
A good ROI depends heavily on asset class and risk level. The S&P 500 averages approximately 10% annual ROI before inflation. Real estate typically delivers 8–12% including appreciation and rental yield. A business investment returning 15–25% ROI is generally considered strong. Always compare ROI against the risk-free rate (US Treasury bonds yield ~4.5% in 2024) and the opportunity cost of alternative investments.
What is the difference between ROI and CAGR?+
ROI measures total return without accounting for time — a 200% ROI tells you nothing about how long it took. CAGR annualizes the return, letting you compare investments across different time horizons. A 200% total ROI over 3 years equals a 44.2% CAGR, while the same 200% over 10 years is only 11.6% CAGR. CAGR is more useful for evaluating investment performance and comparing against benchmarks like market indices.
Can ROI be negative?+
Yes. A negative ROI means the investment lost money. Investing $10,000 and receiving $7,500 back gives a -25% ROI. Negative ROI is important to quantify when reviewing underperforming investments, real estate disposals, or business decisions. It helps frame the actual dollar loss and informs future decision-making.
How does ROI differ from profit margin?+
ROI measures return relative to the cost of investment (capital deployed). Profit margin measures profit relative to revenue (sales). A business can have high profit margins but low ROI if it requires enormous capital investment. ROI is the more relevant metric for investors evaluating where to allocate capital. Profit margin is more relevant for operational efficiency analysis.

ROI Benchmarks by Asset Class (2024)

Knowing what constitutes a good ROI for your specific investment type is essential for evaluating performance. High-yield savings accounts deliver 4.5–5.5% in 2024. The S&P 500 has averaged 10.1% annually since 1957. Rental real estate in major US cities typically yields 6–10% total return. Angel investments average 22–27% IRR for successful exits, though failure rates are high. Use CAGR when comparing any investment held for more than one year.

  • Compare your CAGR against the S&P 500 benchmark (10% long-run average)
  • Adjust for inflation to find your real ROI (nominal minus 3% CPI)
  • Factor in taxes — capital gains tax reduces your effective ROI
  • Include all costs: fees, maintenance, insurance, and opportunity cost

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