Why ROI Calculator Matters
ROI (Return on Investment) is a fundamental metric for measuring investment profitability. An ROI calculator helps you:
- Compare investments - which one delivers the best returns?
- Track performance - is your portfolio growing or declining?
- Make decisions - invest more or cut your losses?
- Set goals - what's a realistic ROI target?
ROI Formula
ROI (%) = [(Final Value - Initial Investment) / Initial Investment] x 100 Example: $10,000 investment now worth $15,000
ROI = [(15,000 - 10,000) / 10,000] x 100 = 50%
ROI Benchmarks by Asset Class
Stocks
Average ROI: 10-15% per year
Good: 15-25% | Excellent: >25%
Real Estate
Average ROI: 8-12% per year
Good: 12-18% | Excellent: >18%
Cryptocurrency
Average ROI: Highly volatile
Can range from -80% to +500%+
Gold
Average ROI: 5-8% per year
Inflation hedge, stable returns
Tips for Using the ROI Calculator
Best Practices:
- Calculate ROI for each investment separately
- Compare ROI using the same time frame (annualized)
- Include transaction fees in your calculations
- Review ROI quarterly for consistent tracking
- Don't just look at ROI - consider risk as well