📊 ROI Calculator

A "good" ROI depends on the investment type. Stock market investments historically return about 10-12% annually. Real estate typically returns 8-12%. A business investment with 20%+ annual ROI is generally considered excellent. Higher ROI usually comes with higher risk.

ROI gives you the total return over the entire investment period. CAGR (Compound Annual Growth Rate) shows the equivalent steady annual growth rate. For example, a 60% total ROI over 3 years equals about 17.1% CAGR — meaning the investment grew as if it earned 17.1% per year, compounded.

For a realistic ROI, yes — you should include taxes on capital gains, along with brokerage fees, maintenance costs, and any other expenses. Use the "Additional Costs" field to factor these in. The net-of-tax ROI gives a more accurate picture of your actual return.

IRR (Internal Rate of Return) is more sophisticated than ROI as it accounts for the timing of cash flows. ROI treats all cash as happening at start and end. IRR is preferable for investments with multiple cash flows over time (like real estate with monthly rent). For simple single-investment scenarios, ROI is sufficient.