What is a good ROI for a small business?

Small businesses should target 20-40% ROI on most investments. Marketing campaigns should achieve 300%+ (3:1 ratio) to be viable. New equipment should pay for itself within 12-18 months. The minimum acceptable ROI is typically 15% - anything below your cost of capital destroys value.

What is the difference between ROI and annualized ROI?

Simple ROI shows total return over the full investment period. Annualized ROI normalizes returns to a per-year basis, allowing comparison between investments of different durations. A 50% ROI over 3 years equals 14.5% annualized. Always use annualized ROI when comparing investments across different time periods.

How do I calculate ROI for marketing campaigns?

Marketing ROI = (Revenue Attributed to Campaign - Campaign Cost) / Campaign Cost × 100. Use UTM parameters and conversion tracking to attribute revenue accurately. Account for all costs: ad spend, creative production, tools, and team time. A 5:1 ratio ($5 revenue per $1 spend) is excellent. Track campaign performance and attribute revenue with [HubSpot](https://hubspot.com) for end-to-end marketing ROI analysis.

What is ROI vs ROAS vs IRR?

ROI = total return on investment. ROAS (Return on Ad Spend) = revenue ÷ ad cost (marketing-specific). IRR (Internal Rate of Return) accounts for the timing of cash flows - more accurate for investments with irregular payments. IO (Return on Investment) = standard metric. IRR is best for comparing complex investments.

How does risk affect ROI expectations?

Higher risk investments require higher expected ROI. Risk-free rate (US Treasury) is ~5%. A stable business investment should earn 10-15%. A startup or new product launch should target 25-50% to compensate for failure risk. Adjust your minimum acceptable ROI based on the investment's risk profile.

Should I consider taxes when calculating ROI?

For accurate comparison, use after-tax ROI. Capital gains taxes (15-20% for long-term, up to 37% for short-term) reduce your net return. Tax-advantaged accounts (401k, IRA, HSA) allow investments to grow tax-free or tax-deferred, effectively increasing your after-tax ROI.

What is the payback period and how does it relate to ROI?

Payback period is how long until cumulative returns equal the initial investment - the break-even time. Two investments with the same ROI can have very different payback periods. Shorter payback periods reduce risk and free up capital for reinvestment. Aim for payback within 12-18 months for most business investments.

How do I compare ROI across different investment types?

Always use annualized ROI for fair comparison. Account for risk, liquidity, time horizon, and tax treatment. A 15% annualized ROI in real estate (moderate risk, low liquidity) may be equivalent to a 25% annualized ROI in a startup (high risk, illiquid). Use the Sharpe Ratio to compare risk-adjusted returns.

ROI計算機

あらゆるビジネス投資やプロジェクトの投資収益率（ROI）と年率換算ROIを計算します。