ROI Calculator
Calculate the return on investment for any business decision, marketing spend, or project. Enter your investment amount and return to get your ROI percentage, profit or loss, and annualised ROI in seconds.
Frequently asked questions
How is ROI calculated?
ROI (Return on Investment) is calculated as: ROI = ((Return Amount - Investment Amount) / Investment Amount) x 100. For example, if you invest £5,000 and receive back £7,500, your profit is £2,500 and your ROI is (£2,500 / £5,000) x 100 = 50%. The return amount should include your original investment — it is the total value you receive, not just the profit portion.
What is a good ROI percentage?
There is no universal answer — it depends on the type of investment and the risk involved. For stock market investments, a 7–10% annual ROI is often cited as a long-term average. For small business marketing, a 3:1 return (200% ROI) is a common benchmark. For higher-risk investments like startups, investors often target 30–50%+ annual returns to compensate for the risk. Always compare ROI against your cost of capital and opportunity cost.
What is annualised ROI and when should I use it?
Annualised ROI (also called CAGR — Compound Annual Growth Rate) converts your total ROI into an equivalent annual rate, making it easy to compare investments held for different time periods. A 50% ROI over 2 years is roughly equivalent to 22.5% per year. Use annualised ROI when comparing investments with different durations — it gives a fair apples-to-apples comparison. This calculator computes it automatically when you enter a time period.
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