Finance

Shop Return on Investment Calculator (5 Years)

Calculate return on investment as a percentage. This shop version uses a 5-year planning term as its starting point.

This Return is the total gain over the whole period as a percentage of the amount invested, not a yearly rate; a positive figure means the final value is higher than the amount invested.

Formula

Return equals final value minus invested amount, divided by invested amount, times 100.

How it works

A positive return means the final value is higher than the amount invested.

Worked example

Amount invested $10,000, final value $15,000, term 5 years. First, the gain is $15,000 minus $10,000, which is $5,000. Using the page formula, return equals $5,000 divided by $10,000, times 100, which is 50.00%. That is the calculator's own result for these defaults, and it is the same on every page in this group because the term is not an input: only the invested amount and the final value decide the answer.

As an illustration only, not the output of this page, the steady yearly rate that would grow $10,000 to $15,000 over 5 years, if growth were perfectly even every year, is 8.45% a year. The simple average, 50.00% divided by 5, is 10.00% a year, which ignores compounding and overstates the steady rate. The illustration is there so the same 50.00% total can be judged honestly over different lengths of time.

Who this term suits for a shop owner: a newly opened shop judging a first refit, such as new shelving, a till upgrade, signage, or a small shopfront refresh, where the owner wants to know whether the money put in has paid back within about 5 years.

FAQs

What is a good ROI?
There is no single good figure. Compare returns over the same period and with the same risk before deciding.

Is this shop calculator exact?
No, it is an estimate for planning only, based on the numbers you enter.

Are these figures financial advice?
No, they are estimates for planning only, not financial advice. Check with a qualified adviser for decisions involving large sums.

Is 50% in 5 years a good return for a shop?
It looks strong, but only against the same period and the same risk. A 50% return over 5 years is not the same as 50% in one year, and it says nothing about rent, wages, or stock costs unless those are inside the two figures you entered.

What does the 8.45% a year figure mean here?
It is an illustration only, not the output of this page. It is the steady yearly rate that would grow $10,000 to $15,000 over 5 years if growth were perfectly even every year. Real shop growth is never that even.

What if shop takings fall and the final value is only $12,000?
Then the return is $12,000 minus $10,000, divided by $10,000, times 100, which is 20.00%. The same formula gives a smaller answer, which is why the final value you enter matters more than the headline percentage.

Estimates only, not financial advice. Figures are approximate and do not include all fees, taxes, or changing rates unless stated.