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Return on Investment Calculator
Calculate ROI from initial investment and final value
Starting investment amount (max $100M)
Expected or actual final value (max $100M)
Investment duration for annualized ROI (max 100 years)
How to Use the ROI Calculator
Basic ROI Calculation
Enter initial investment and final value to calculate return percentage and dollar gains.
ROI Formula:
ROI = (Final Value - Initial Investment) / Initial Investment × 100
Gain/Loss Analysis
When you know the dollar amount gained or lost, calculate the percentage return on your investment.
Quick ROI:
Perfect for stock trades, real estate flips, or completed investments.
Business Analysis
Advanced NPV and payback period calculations for business investment decisions.
Professional Tool:
Used by businesses to evaluate equipment, expansion, and project investments.
Investment Types & Expected ROI
Stock Market
- • S&P 500 average: 7-10% annually
- • Individual stocks: -50% to +500%
- • Growth stocks: 10-15% target
- • Dividend stocks: 3-8% typical
Real Estate
- • Rental properties: 8-12% annually
- • House flipping: 10-30% per project
- • REITs: 6-10% annually
- • Commercial real estate: 6-15%
Business Investments
- • Equipment purchases: 15-25%
- • Marketing campaigns: 20-50%
- • Technology upgrades: 10-30%
- • Training/education: 20-100%
Business Decision Framework
ROI Evaluation Criteria
- • Excellent (15%+): High-priority investments
- • Very Good (10-15%): Strong consideration
- • Good (7-10%): Market-rate returns
- • Positive (0-7%): Low but safe returns
- • Negative: Avoid or reconsider
Payback Period Guidelines
- • Under 2 years: Excellent, low-risk investment
- • 2-3 years: Good payback period
- • 3-5 years: Acceptable for long-term assets
- • Over 5 years: High risk, needs strong justification
Frequently Asked Questions
What's a good ROI percentage?
A good ROI depends on the investment type and risk level. Generally, 7-10% annually matches market averages, 10-15% is very good, and 15%+ is excellent. However, higher ROI usually means higher risk.
How do I calculate ROI for rental property?
For rental properties, calculate annual net rental income (rent minus expenses) divided by your total investment (down payment, closing costs, renovations). A good rental ROI is 8-12% annually.
What's the difference between ROI and NPV?
ROI shows percentage return, while NPV considers the time value of money using a discount rate. NPV tells you if an investment creates value in today's dollars - positive NPV means proceed, negative means avoid.
How long should the payback period be?
Ideal payback periods are under 3 years for low risk, 3-5 years for moderate risk investments. Longer payback periods increase uncertainty and reduce investment attractiveness.
Should I use gross or net ROI?
Always use net ROI by subtracting all costs (taxes, fees, maintenance, etc.) from your returns. Gross ROI can be misleadingly high and doesn't reflect true investment performance.
How do I compare investments with different time periods?
Use annualized ROI to compare investments fairly. This shows what the investment would return per year, making it easy to compare a 2-year vs. 5-year investment opportunity.
When should I consider the risk-adjusted ROI?
Always consider risk when evaluating ROI. A 12% return on a stable business might be better than 20% on a volatile startup. Factor in your risk tolerance and diversification needs.
Real-World ROI Examples
Stock Investment
Investment: $10,000 in S&P 500 index fund
Result: $13,500 after 3 years
ROI: 35% total (10.6% annually)
Strong performance above market average
Rental Property
Investment: $50,000 down payment + $10,000 repairs
Annual net income: $6,000 after expenses
ROI: 10% annually
Excellent rental property return
Business Equipment Purchase
Investment: $25,000 for new machinery
Additional annual profit: $8,000
ROI: 32% annually | Payback: 3.1 years
Strong business investment with reasonable payback
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Complete Guide to ROI Calculator
Calculate return on investment and profitability
Quick Answers
What is roi calculator?
Why use our roi calculator?
Free, accurate, instant results with no registration required. Mobile-optimized, secure, and designed by experts with 10+ years of experience in finance calculations.
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