ROI Calculator
Calculate return on investment (ROI), net profit, annualized ROI, and payback period. Includes typical ROI benchmarks for savings, stocks, real estate, and business investments.
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Typical ROI benchmarks
| Investment type | Typical annual ROI |
|---|---|
| Savings account / fixed deposit | 2–4% |
| Government bonds | 4–8% |
| Stock market (long-term avg.) | 7–12% |
| Real estate | 6–12% |
| Small business | 15–30% |
| Startup / venture capital | 50%+ |
Frequently Asked Questions
ROI (Return on Investment) = (Final Value − Initial Investment) / Initial Investment × 100. For example, if you invest $10,000 and receive $13,000, your ROI is (13,000 − 10,000) / 10,000 × 100 = 30%.
A "good" ROI depends on the asset class and risk level. Savings accounts typically yield 2–4% annually. Long-term stock market investments average 7–12% per year (S&P 500 historical average ≈10%). Real estate returns 6–12%. Business investments often target 15–30%. Higher returns always come with higher risk.
Simple ROI tells you the total percentage gain over the entire holding period. Annualized ROI (also called CAGR — Compound Annual Growth Rate) converts that total into an equivalent per-year rate. For example, a 50% total ROI over 5 years equals approximately 8.45% annualized ROI, calculated as (1.50)^(1/5) − 1.
The payback period is how long it takes to recover your initial investment from the returns generated. It is calculated as: Payback Period = Initial Investment / Annual Return. For example, a $10,000 investment generating $2,000 per year has a 5-year payback period. Shorter payback periods indicate lower risk.