Calculate return on investment for any project, campaign, or financial decision. See ROI percentage, net profit, payback period, and annualized return.
| Total Return | Net Profit | ROI | Annualized |
|---|
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Return on Investment is the universal language of business decisions. Should you run that ad campaign? Hire that employee? Buy that equipment? Every decision has a cost and expected return. ROI tells you whether the return justifies the cost.
| Category | Average | Good |
|---|---|---|
| Stock Market (S&P 500) | 7-10%/yr | 12%+ |
| Real Estate | 8-12%/yr | 15%+ |
| Email Marketing | 3,600% | 4,000%+ |
| SEO | 500-1,000% | 1,500%+ |
| Paid Ads | 200-400% | 500%+ |
| Employee Training | 200-350% | 400%+ |
Scenario 1: Marketing Campaign. Sarah spends $5,000 on Facebook ads generating $22,000 revenue. Product costs: $8,000. Net: $22,000 - $8,000 - $5,000 = $9,000 profit. ROI: 180%. Use our Profit Margin Calculator to verify margins.
Scenario 2: Real Estate. Marcus buys a $250K rental with $50K down. Annual net income: $6,000. ROI on total: 2.4%. ROI on equity: 12%. Leverage amplifies returns. Use our Compound Interest Calculator for growth projections.
Scenario 3: Employee Hire. Priya hires a salesperson at $75K total cost. Rep generates $350K revenue, $140K direct costs. Net: $135,000 profit. ROI: 180%. Use our Employee Cost Calculator for true hiring costs.
Scenario 4: Annualized Comparison. Investment A: 40% over 2 years = 18.3%/yr. Investment B: 80% over 5 years = 12.5%/yr. A earns more per year despite lower total. Always annualize. Use our Investment Return Calculator for CAGR.
💡 Key insight: ROI without time is misleading. 100% in 1 year is spectacular. 100% over 10 years is only 7.2% annualized. Always ask: what is the annualized return?
| Negative | Lost money |
| 0% | Break even |
| 10-20% | Decent |
| 50-100% | Strong |
| 200%+ | Excellent |