Quick Answer: What Is A Good ROI Ratio?


“A good ROI for marketing is 5:1.

A 5:1 ratio is middle of the bell curve.

A ratio over 5:1 is considered strong for most businesses, and a 10:1 ratio is exceptional.

What percentage of ROI is good?

A really good return on investment for an active investor is 15% annually. It’s aggressive, but it’s achievable if you put in time to look for bargains. You can double your buying power every six years if you make an average return on investment of 12% after taxes and inflation every year.

What is a good ROI for a startup?

What they really want is an IRR across all their seed investments that beats the S&P 500 return over the same time period, as startup investing is far riskier. The short answer to that is 10x from at least 1 in 10 of their startup investments, 2.5x or more across that portfolio, a.k.a. 15–20% IRR on the asset class.

What is a good ROI on a business?

Most people would agree that, over time, an average annual return of 5 to 12 percent on your passive investment dollars is good, and anything higher than 12 percent is excellent.

What is a good ROI for a restaurant?

What is a good ROI on a new restaurant? The proper way to calculate a return is using the “cash flow method”, it should meet at least 15% ROI minimum in your first year, and you are in a good business if you could reach 20 to 25% annual profit vs capital. Good restaurant business require sustainability over 5 years.