What Is a Good ROI? Understanding Investment Returns in 2026

Published March 13, 2026 · 6 min read

When someone says they got a "great return" on an investment, what does that actually mean? A 10% return on crypto over a month is very different from 10% on a savings account over a year. Understanding ROI benchmarks helps you evaluate whether your investments are performing well.

Historical Average Returns by Asset Class

US stocks (S&P 500): ~10% annually before inflation, ~7% after inflation, over the last century.

Bonds (US Aggregate): ~4-6% annually, with much lower volatility than stocks.

Real estate: ~8-12% annually including rental income and appreciation, varying enormously by location.

Savings accounts / CDs: 4-5% currently (2026), historically 2-3%.

Calculate your personal returns with our ROI Calculator to see how your investments compare to these benchmarks.

Why Annualized Returns Matter

A 50% return sounds incredible — but over 5 years, it's only about 8.4% annually. Over 10 years, it's 4.1% annually. Always annualize returns to make fair comparisons. Our ROI Calculator does this automatically.

The Power of Compound Returns

At 7% annual returns, your money doubles every ~10 years (the Rule of 72). At 10%, it doubles every ~7 years. This is why starting early matters so much — see our Future Value Calculator and our article on how $500/month reaches $1 million.

Risk-Adjusted Returns

A 15% return with extreme volatility may be worse than a 10% return with steady growth, depending on your timeline and risk tolerance. Diversified portfolios aim for the best risk-adjusted returns. Track your overall picture with our Net Worth Calculator.

What Rate Do You Need?

Use our Interest Rate Calculator to find the return needed to reach a specific goal. Planning for retirement? Our Retirement Calculator and 401K Calculator model realistic growth scenarios.