ROI & Break-Even Calculator – Investment Return & Margin

Calculate Return on Investment (ROI %), annualized gain, net profit and business break-even threshold.

Initial Investment / Total Cost

Total Expected Return / Revenue

Time Horizon (Years)

Currency

Net Profit / Gain

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Total Return on Investment (ROI)–

Annualized Return (CAGR)–

Investment Multiple–

Financial estimate only, not certified financial or tax advice.

What is Return on Investment (ROI)?

Return on Investment (ROI) is a fundamental financial profitability metric used to evaluate the efficiency and yield of an investment. It measures the net gain or loss generated relative to the initial cost.

Formula:

ROI = (Net Return / Cost of Investment) × 100%

Why Annualized ROI matters

Comparing two investments requires taking time duration into account. An investment that yields 50% over 10 years has an annualized return of only ~4.1%, whereas an investment yielding 25% over 1 year is dramatically more profitable per unit of time.

Frequently asked questions

What is considered a good ROI?

An annual ROI above 7–10% is generally considered solid for equity markets (matching historical S&P 500 returns). High-risk ventures or startups often target 25–50%+ annual ROI.

Can ROI be negative?

Yes. If total return is less than initial cost, the ROI percentage is negative, representing an overall financial loss.