It depends on the asset class. For stocks, 7–10% per year is considered good. For real estate, 8–12% annually is typical. Any positive ROI is better than a loss.

What does a negative ROI mean?

A negative ROI means the investment lost money. For example, investing $10,000 and getting back $8,000 gives an ROI of -20%.

Does ROI account for time?

Standard ROI does not factor in time. For time-adjusted analysis, use Annualised ROI or Internal Rate of Return (IRR), which account for how long the investment was held.

ROI Calculator — Return on Investment

The ROI Calculator measures the return on an investment as a percentage of the initial cost. ROI is one of the most widely used financial metrics for evaluating the efficiency and profitability of an investment — whether it is a stock, real estate, business, or marketing campaign. A positive ROI means the investment made money; a negative ROI means it lost money.

Initial Investment Cost($)

Final Value / Return($)

Frequently Asked Questions

Return on Investment (ROI) measures how much profit or loss an investment generated relative to its cost. Formula: ROI = (Final Value - Initial Cost) / Initial Cost × 100.

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