A good average return on investment (ROI) typically falls around 7-10% per year for a diversified portfolio in the stock market. To break it down, if you invest $1,000 and earn a 10% ROI over a year, you would make $100, bringing your total investment value to $1,100. However, it’s important to note that past performance isn’t a guarantee of future results, and gains can vary widely based on market conditions.

Return on Investment (ROI) is a key financial metric that measures the gain or loss made on an investment relative to the amount invested. It’s calculated as (Net Profit / Cost of Investment) x 100. This percentage helps investors understand how effectively their money is working for them.