what is considered a good return on an investment 
a good return on investment is generally considered to be about 7 per year which is also the average annual return of the s p 500 adjusting for inflation the bottom linethe rate of return ror is a simple to calculate metric that shows the net gain or loss of an investment or project over a set period of time ror is expressed as a percentage of the initial value the internal rate of return irr also measures the performance of investments or projects but while ror shows the total growth since the start of the project irr shows the annual growth rate the compound annual growth rate cagr is another metric that shows the annual growth rate of an investment but this time taking into account the effect of compound interest 