What Is a Good ROI? ROI Benchmarks for Every Investment Type (2026)
"What is a good ROI?" is one of the most asked questions in personal finance and business. The answer depends entirely on context. Here are the definitive benchmarks for 2026 — stocks, real estate, marketing, and business investments in the USA, UK, Canada, and Australia. By Rajesh Kumar Ram
"Is my ROI good?" is a question without a universal answer — it depends on the investment type, risk level, time horizon, inflation rate, and opportunity cost. A 5% ROI from a savings account is great; 5% from a high-risk startup investment is terrible. This guide gives you concrete ROI benchmarks for every major investment category so you can evaluate any return accurately. Use our free ROI Calculator to compute your actual returns.
Good ROI Benchmarks by Investment Type (2026)
| Investment Type | Poor ROI | Average ROI | Excellent ROI |
|---|---|---|---|
| US Stock Market | Below 5% | 7%–10% | Above 15% |
| Real Estate (USA) | Below 4% | 7%–12% | Above 15% |
| Small Business | Below 10% | 15%–25% | Above 30% |
| Marketing Campaign | Below 100% | 200%–500% | Above 1000% |
| Bonds (USA) | Below 2% | 4%–5.5% | Above 6% |
| Savings Account | Below 2% | 4%–5% | Above 5.5% |
The Risk-Return Framework: Why "Good" Is Relative
The fundamental principle of finance: higher expected return requires higher risk. This means a "good" ROI must be evaluated against the risk taken:
- 🔒 Risk-free rate: US Treasury yield (~4.5% in 2026). Any investment that doesn't beat this is not worth the risk.
- 📊 Market risk premium: The S&P 500 historically delivers ~5%–6% above the risk-free rate. Below this excess return, you're not being compensated for equity risk.
- 🏠 Illiquidity premium: Real estate and business investments should earn a premium over liquid investments for the inconvenience and difficulty of exiting.
The Rule of 72: Quick Mental Math for ROI
The Rule of 72 tells you how many years it takes to double your money at any ROI rate:
Years to Double = 72 ÷ Annual ROI %
- 4% ROI → doubles in 18 years
- 7% ROI → doubles in 10.3 years
- 10% ROI → doubles in 7.2 years
- 14% ROI → doubles in 5.1 years
- 20% ROI → doubles in 3.6 years
- 36% ROI → doubles in 2 years
What Is a Good ROI After Inflation?
Real ROI (what actually matters for wealth growth) = Nominal ROI − Inflation Rate (approximation)
In 2026, with inflation around 2.5%–3.5% in the USA, 4%–5% in UK and Australia:
- USA: 7% nominal = ~4%–5% real ROI (good)
- UK: 7% nominal = ~2%–3% real ROI (barely adequate)
- Australia: 8% nominal = ~3%–4% real ROI (acceptable)
- Canada: 6% nominal = ~3% real ROI (marginal)
How to Use the ROI Calculator to Evaluate Your Investments
- Enter all costs honestly — including fees, taxes, time, and opportunity cost
- Calculate both total ROI and CAGR (annualized)
- Calculate real ROI by entering current inflation rate
- Compare against benchmarks for that asset class
- Ask: did I earn a premium over the risk-free rate? If no — why take the risk?
Use our free ROI Calculator to run these calculations in seconds for any investment.
Frequently Asked Questions
What is considered a good ROI percentage?
Stocks: 10%+ annually excellent. Real estate: 8%–12%. Business: 15%–25%. Marketing: 200%+. Savings: 4%–5%. Always compare against risk-free rate (~4.5% US Treasury in 2026).
Is a 20% ROI good?
Yes — excellent for stocks, strong for business, exceptional for real estate. For marketing it would be poor. Context matters. 20% annual return doubles money in 3.6 years.
Is a 5% ROI good?
From savings: yes (no risk). From stocks: below average. From real estate (gross rental yield): typical. From marketing: very poor. Always compare against risk-free rate and alternatives.
What is the Rule of 72 and how does it relate to ROI?
Years to double = 72 ÷ Annual ROI %. At 10% ROI, money doubles in 7.2 years. At 7%: 10.3 years. At 20%: 3.6 years. Quick mental math for any investment's growth power.
How does inflation affect what's a good ROI?
Real ROI ≈ Nominal ROI − Inflation. With 3% inflation, a 5% ROI = only 2% real growth. With 5% inflation (recent UK/Australia), you need 8%+ just to maintain purchasing power.