DomainGlossary
intermediateValuation

ROI (Return on Investment)

The profit from selling a domain relative to the cost of acquiring and holding it.

ROI in domain investing measures the profit relative to the total investment made in acquiring and holding a domain. It is calculated as (sale price - acquisition cost - holding costs) / total invested × 100%. Because domain investing is highly illiquid and sale timelines are unpredictable, annual ROI calculations must account for how long a domain was held. Successful domain investors aim for ROI multiples of 10x or more on individual sales.