Quick answer: a good ROI is 10%+ per year for stocks, 8–12% per year for rental property, 15–30% per year for business investments and 200–500% per campaign for marketing.
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Calculate My ROI →A good ROI percentage depends on the investment type. As a general benchmark, a good annual return is 10% or more for stocks, 8–12% for rental real estate, and 15–30% for business investments. Marketing campaigns are judged on a different scale, with 200–500% per campaign as the usual target. Anything above your cost of capital is technically positive, but context determines whether it is truly strong.
If you've recently calculated your return on investment and are wondering whether the number is impressive, average, or disappointing, you're not alone. One of the most common questions investors, business owners, marketers, and property buyers ask is: what is a good ROI percentage?
The answer depends on what you're investing in. A 10% ROI might be excellent in one industry but considered weak in another. This guide breaks down the latest ROI benchmarks by sector so you can compare your results against realistic 2026 standards.
Not sure how to get your number? See how to calculate ROI, or use our free ROI calculator to get your ROI, annualized return and a benchmark comparison.
What Is Considered a Good ROI? (Quick Answer)
A good return on investment is one that significantly exceeds your initial investment cost and outperforms typical returns in your industry.
- Stocks: 10%+ annually is generally considered strong.
- Rental real estate: 8–12% is considered healthy.
- Marketing campaigns: 200–500% ROI is often the target.
- Business investments: 15–30% is considered excellent.
- Solar panels: 10–20% can be very attractive.
- Employee training: 200–500% ROI is commonly achievable.
Rather than focusing on a single number, compare your ROI against industry benchmarks and your alternative investment options.
Good ROI Benchmarks by Investment Type
| Investment Type | Below Average | Average | Good | Excellent |
|---|---|---|---|---|
| Stocks / Equity (per year) | Below 7% | 7–10% | 10–15% | 15%+ |
| Rental Real Estate (per year) | Below 4% | 4–8% | 8–12% | 12%+ |
| Real Estate Flip (per project) | Below 10% | 10–20% | 20–30% | 30%+ |
| Marketing Campaigns | Below 100% | 100–200% | 200–500% | 500%+ |
| Business Investment (per year) | Below 5% | 5–15% | 15–30% | 30%+ |
| Solar Panels (per year) | Below 5% | 5–10% | 10–20% | 20%+ |
| Employee Training | Below 50% | 50–200% | 200–500% | 500%+ |
| Trade Shows / Events | Below 100% | 100–200% | 200–400% | 400%+ |
This ROI benchmark by sector provides a useful starting point, but performance can vary depending on market conditions, location, risk level, and time horizon.
Stock Market: What Is a Good ROI?
For stock market investors, a good ROI percentage is generally considered 10% or higher annually.
The benchmark often used is the historical performance of the S&P 500, which has produced average annual returns of roughly 10% over the long term. Investors consistently achieving returns above this level are outperforming the broader market.
General stock market ROI benchmarks:
- Negative ROI = Poor
- 0–6% ROI = Below Average
- 7–10% ROI = Average to Good
- 10–15% ROI = Strong
- 15%+ ROI = Excellent
For example, if you invest $20,000 and the investment grows to $22,000 after one year, your gain is $2,000.
ROI = ($2,000 ÷ $20,000) × 100 = 10%
That return would generally be considered a solid result for a diversified stock portfolio.
It's important to remember that higher ROI usually comes with higher risk. A portfolio producing 20% returns every year consistently is rare and typically involves greater volatility than broad-market index investing.
Real Estate: What Is a Good ROI?
Real estate returns vary significantly depending on whether you're buying rental properties for long-term cash flow or flipping properties for short-term profits.
For rental properties, a good ROI percentage is typically 8–12%. For property flips, investors often aim for 20–30% or more because of the additional risk, renovation costs, and shorter investment timeline.
If you want to analyze your property's profitability, use our real estate ROI calculator.
Rental Property ROI Benchmarks
- Below 4% = Poor
- 4–8% = Average
- 8–12% = Good
- 12%+ = Excellent
Example:
You purchase a rental property for $50,000 and generate $6,000 in annual net rental income.
ROI = ($6,000 ÷ $50,000) × 100 = 12%
A 12% ROI would generally be considered a strong return in most real estate markets.
Investors should also evaluate occupancy rates, maintenance costs, financing expenses, and local market trends before comparing returns with national averages.
Property Flipping ROI Benchmarks
- Below 10% = Weak
- 10–20% = Average
- 20–30% = Good
- 30%+ = Excellent
Because property flips require active management and carry higher risk, investors usually seek substantially higher returns than traditional rental properties.
Marketing: What Is a Good ROI?
Marketing ROI often produces some of the highest percentages of any investment category because successful campaigns can generate revenue many times greater than their cost.
Businesses commonly ask: is 200% ROI good? In marketing, the answer is usually yes. In fact, many organizations target returns between 200% and 500% for major campaigns.
You can measure campaign performance using our marketing ROI calculator.
What Is a Good Marketing ROI Percentage? (MROI)
A good marketing ROI percentage is generally considered to be 200% to 500%, meaning a campaign brings back two to five times what you spent on it. This metric is often abbreviated as MROI, short for marketing return on investment, and it measures the revenue a campaign generates compared to its cost.
For example, if you spend $10,000 on a campaign and it generates $40,000 in attributable revenue, your MROI is 300%. That would generally be viewed as a strong result.
Different marketing channels produce very different average returns, so a single benchmark doesn't apply evenly across the board. Email marketing tends to produce the highest reported ROI of any channel, sometimes exceeding 3,000%, because the cost of sending an email is so low relative to typical response rates. Paid search and paid social usually land in a more moderate range, often 100% to 300%, since there's an ongoing cost to keep ads running.
Rather than judging your MROI against one flat number, compare it to the typical range for the specific channel you're measuring.
Marketing ROI Benchmarks
- Below 100% = Underperforming
- 100–200% = Acceptable
- 200–300% = Good
- 300–500% = Strong
- 500%+ = Excellent
Example:
A company spends $10,000 on a digital advertising campaign and generates $40,000 in attributable revenue.
Profit = $30,000
ROI = ($30,000 ÷ $10,000) × 100 = 300%
A 300% ROI would generally be considered a highly successful campaign.
According to industry reports, email marketing frequently generates some of the highest ROI figures in business, often exceeding 3,000% because of its low operating costs and strong conversion potential.
When evaluating marketing ROI, businesses should also consider customer lifetime value (CLV), retention rates, and brand awareness effects that may not appear immediately in campaign data.
Business Investments: What Is a Good ROI?
Business investments include equipment purchases, technology upgrades, expansion projects, process improvements, and operational initiatives.
For most businesses, a 15–30% ROI is considered strong and typically justifies the investment risk.
Business ROI Benchmarks
- Below 5% = Poor
- 5–15% = Average
- 15–25% = Good
- 25–30% = Strong
- 30%+ = Excellent
Example:
A company invests $100,000 in automation software and reduces annual operating costs by $25,000.
ROI = ($25,000 ÷ $100,000) × 100 = 25%
A 25% ROI would generally be viewed as an excellent business investment and may outperform many alternative uses of company capital.
Business leaders should compare projected ROI against other opportunities available to the organization rather than evaluating projects in isolation.
Solar Panels: What Is a Good ROI?
Solar energy systems are increasingly evaluated as long-term financial investments rather than simple environmental upgrades.
For residential and commercial solar projects, a 10–20% ROI is often considered attractive, especially when electricity costs continue rising over time.
You can estimate your own returns using our solar panel ROI calculator.
Solar ROI Benchmarks
- Below 5% = Weak
- 5–10% = Average
- 10–15% = Good
- 15–20% = Strong
- 20%+ = Excellent
Example:
A homeowner spends $15,000 installing solar panels and saves $2,250 annually on electricity bills.
ROI = ($2,250 ÷ $15,000) × 100 = 15%
A 15% annual return would generally compare favorably with many traditional investments while also reducing energy expenses.
Government incentives, tax credits, energy prices, system lifespan, and local climate conditions can significantly influence actual solar returns.
Employee Training: What Is a Good ROI?
Employee training is often overlooked when discussing return on investment, yet it can generate some of the highest long-term returns of any business initiative.
Organizations that improve productivity, reduce turnover, and increase employee performance frequently achieve ROI figures between 200% and 500% from well-designed training programs.
Measure your program's effectiveness using our employee training ROI calculator.
Employee Training ROI Benchmarks
- Below 50% = Poor
- 50–200% = Average
- 200–300% = Good
- 300–500% = Strong
- 500%+ = Excellent
Example:
A company spends $20,000 on employee training and realizes $80,000 in productivity gains and cost savings over the following year.
Profit = $60,000
ROI = ($60,000 ÷ $20,000) × 100 = 300%
A 300% ROI would generally be considered a highly successful workforce development investment.
Beyond measurable financial gains, training programs often improve employee engagement, customer satisfaction, and retention rates, creating additional long-term value.
Events: What Is a Good ROI for Trade Shows and Conferences?
A good ROI for event marketing, including trade shows, conferences, and sponsorships, is commonly considered to fall between 200% and 400%, meaning the leads and sales generated are worth two to four times the cost of exhibiting. Events involve travel, booth space, staffing, and materials, so the total cost is usually higher than a digital campaign, which means the bar for a "good" return is higher too.
Event ROI Benchmarks
Below 100% = Underperforming
100–200% = Average
200–300% = Good
300%+ = Strong
Example:
A company spends $15,000 to exhibit at a trade show, including booth costs, travel, and staff time, and closes $45,000 in new business directly tied to leads from the event.
ROI = ($30,000 ÷ $15,000) × 100 = 200%
A 200% ROI would generally be considered a solid outcome for event marketing, especially once you factor in relationship-building and brand exposure that don't show up directly in the numbers.
Event ROI is harder to track precisely than digital marketing ROI, since some leads convert months after the event. Many marketers use a longer attribution window, sometimes six to twelve months, to capture the full value of a trade show or conference.
Why Your Cost of Capital Matters More Than the Number
Many investors focus solely on achieving a high ROI percentage, but the more important question is whether your return exceeds your cost of capital.
Cost of capital represents the minimum return required to justify an investment. If a project earns less than the cost of financing or the expected return from alternative opportunities, the investment may actually destroy value even if it shows a positive ROI.
For example:
- Investment ROI = 8%
- Cost of capital = 5%
- Net value creation = Positive
However:
- Investment ROI = 8%
- Cost of capital = 10%
- Net value creation = Negative
This is why professional investors, financial analysts, and business executives evaluate ROI alongside financing costs, risk levels, and alternative investment opportunities.
How to Use Our ROI Calculator to Check Your Return
Calculating ROI manually is straightforward, but comparing your result against realistic benchmarks can be more challenging.
Our free ROI calculator helps you:
- Calculate simple ROI instantly
- Estimate annualized ROI
- Compare your return against industry averages
- Evaluate investment performance faster
- Analyze after-tax returns
Simply enter your investment amount, final value, and investment period to see how your return compares with common ROI benchmarks by sector.
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Final Thoughts: What ROI Should You Aim For?
If you're wondering what ROI should I aim for, the following benchmarks provide a practical target:
- Stocks: 10%+ annually
- Rental Real Estate: 8–12%
- Property Flips: 20–30%+
- Marketing Campaigns: 200–500%+
- Business Investments: 15–30%
- Solar Panels: 10–20%
- Employee Training: 200–500%+
Remember that a good return on investment is not necessarily the highest percentage. The best investments combine strong returns with acceptable risk, sustainable growth, and performance that exceeds your cost of capital.
Before making any investment decision, learn how to calculate ROI correctly and compare your results against reliable industry benchmarks.
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Use our free ROI calculator to calculate your simple ROI, annualized return, after-tax ROI, and instantly compare your results against industry benchmarks.