FinanceTools

What Is a Good ROI Percentage?

A good ROI (return on investment) depends on the type of investment, risk level, and time period. However, there are general benchmarks you can use.

Typical ROI ranges

Low-risk investments: 3% – 6%
Moderate-risk investments: 7% – 12%
High-risk investments: 15%+

Example

If you invest $5,000 and earn $500 profit, your ROI is 10%, which is generally considered a good return for moderate-risk investments.

What affects ROI

ROI depends on risk, time horizon, and market conditions. Higher returns usually come with higher risk.

Related guides

Read our ROI example guide and our ROI formula explanation.

Key takeaway

A “good” ROI depends on your goals, but anything above inflation and risk-adjusted expectations can be considered strong.

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