What counts as a good ROI?

For passive investments, 7–10% annual ROI is solid. For active business projects, 20%+ is healthy. Always compare against your cost of capital.

What's annualised ROI?

Annualised ROI converts total ROI to an equivalent 12-month rate so you can fairly compare investments of different durations.

What is payback period?

How long it takes to recover the initial investment from the project's monthly net cash flows.

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ROI Calculator

Calculate return on investment, net profit, annualised ROI, and payback period — with scenario comparison and a break-even table.

Investment Details

Initial Investment $10,000

Total Return / Revenue $14,000

Time 12 mo

Monthly Costs $0/mo

Results

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Return on Investment

0%100%

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Net Profit

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Payback Period

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Annualised ROI

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Total Costs

Scenario Comparison

How a 20% variance in return changes the picture

Conservative −20%

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Current

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Optimistic +20%

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How to use

Enter your initial investment and the total return you expect to receive.
Set the time horizon and any ongoing monthly costs.
Read ROI, payback, annualised ROI, and (when monthly costs apply) the month-by-month break-even table.

FAQ

For passive investments, 7–10% per year is solid. For active business projects, 20%+ is a healthy benchmark. Always compare against your cost of capital — an 8% ROI when your loan rate is 8% is breaking even.

ROI compares profit to the capital deployed. Profit margin compares profit to revenue. A capital-light business can show high margins with modest ROI, or vice versa.

No. Figures are nominal. For long horizons, subtract the inflation rate from the annualised ROI to get a real-return estimate, or use NPV / IRR for time-value adjusted analysis.