What Is a Good ROI? Benchmarks by Investment Type
Learn what ROI is considered good for stocks, real estate, bonds, and business investments. Reasonable return expectations vary widely by asset class.
Guide overview
"Good" ROI depends entirely on what you are investing in. Stocks, real estate, bonds, and startups have completely different reasonable return expectations.
Learn what ROI is considered good for stocks, real estate, bonds, and business investments. Reasonable return expectations vary widely by asset class.
Key points from the source guide
The source guide compares ROI expectations across stocks, real estate, bonds, and savings.
It separates nominal returns from real returns after inflation.
It frames high returns as a risk signal, especially when they are promised consistently.
Try the related Toolars calculators
This migrated guide links to these Toolars tools: roi-calculator, compound-interest.
Tools mentioned in this article
Frequently asked questions
- Is 5% ROI good?
- For low-risk investments like bonds or savings accounts, 5% is excellent. For stocks, 5% is below the historical average of 7-10%. Context matters: compare ROI to similar investments with similar risk levels.
- Can I get 20% ROI consistently?
- Very few investors achieve 20% consistently over long periods. Promises of 20%+ returns are often signs of scams or extremely high-risk investments.