Calculate return on investment for stocks, projects, or any financial decision.
Return on Investment (ROI) measures the profitability of an investment relative to its cost. The basic formula is: ROI = (Final Value - Initial Investment) / Initial Investment × 100. A positive ROI means you made money; negative means a loss.
Total ROI shows the overall percentage gain or loss over the full period. Annualized ROI (also called CAGR — Compound Annual Growth Rate) shows the equivalent yearly return, making it easier to compare investments held for different time periods.
It depends on the investment type. For stocks, a 7–10% annualized ROI is considered solid (matching historical S&P 500 returns). For real estate, 8–12% is typical. For business investments, expectations are often higher (15–30%+) to justify the additional risk.