How to Calculate ROI on Any Investment
A practical guide to calculating return on investment for marketing, property, stocks, and business decisions.
What is ROI?
Return on Investment (ROI) is the simplest way to measure whether an investment was worth it. It tells you how much profit (or loss) you made relative to what you spent.
The formula
ROI = ((Return − Investment) ÷ Investment) × 100
For example: You invest £5,000 in marketing and generate £12,000 in revenue. ROI = ((£12,000 − £5,000) ÷ £5,000) × 100 = 140%.
ROI benchmarks by type
| Investment type | Typical ROI range |
|---|---|
| Stock market (long-term) | 7–10% per year |
| Rental property | 5–15% per year |
| PPC advertising | 200–500% |
| Email marketing | 3,600% (industry average) |
| SEO | 500–1,000%+ (long-term) |
Limitations of simple ROI
- Does not account for the time value of money
- Does not consider ongoing costs or cash flow timing
- Can be misleading for very short or very long time periods
- For more sophisticated analysis, consider NPV or IRR
Try the calculator
Use our ROI Calculator to measure the return on any investment, with annualisation and side-by-side comparison.
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Last updated
Last reviewed: 2026-04-12T09:36:51.531Z.