ROI Calculator
Calculate Return on Investment (ROI) for any investment. Find net profit, ROI percentage, and annualised return.
ROI
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Net Profit
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Annualised ROI
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Multiplier
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What is ROI Calculator?
An ROI (Return on Investment) calculator measures the profitability of an investment by expressing net profit as a percentage of the initial cost. It is one of the most universal metrics in finance and business, used for evaluating stocks, real estate, business projects, and marketing campaigns. When an investment period is provided, it also computes the annualised ROI for fair comparison across different timeframes.
How to use
- 1 Enter the initial amount you invested or spent.
- 2 Enter the final value of the investment or total revenue generated.
- 3 Optionally enter the investment period in years to see the annualised ROI.
- 4 The calculator shows ROI percentage, net profit or loss, annualised ROI, and the investment multiplier.
- 5 A positive ROI means profit; a negative ROI means a loss on the investment.
Formula
Example calculation
Investing ₹1,00,000 and receiving ₹1,50,000 after 3 years gives an ROI of 50%. The annualised ROI is approximately 14.47% per year — a useful figure when comparing this against a fixed deposit offering 7% per annum.
Frequently asked questions
What is a good ROI?
A good ROI depends on the asset class and risk level. Stock market investments historically return 10–15% annually. Real estate typically offers 8–12%. A ROI that exceeds your cost of capital or inflation rate is generally considered acceptable.
Why use annualised ROI instead of total ROI?
Total ROI ignores time — a 100% return over 10 years is far less impressive than 100% in 2 years. Annualised ROI normalises returns to a per-year basis, enabling fair comparison across investments of different durations.
Does ROI account for taxes and fees?
The basic ROI formula does not. For accurate after-tax ROI, subtract capital gains tax and transaction costs from your net profit before dividing by the initial investment.
What is the difference between ROI and CAGR?
ROI measures total return from start to finish. CAGR expresses that return as an equivalent steady annual growth rate. For a single lump-sum investment, annualised ROI and CAGR yield the same result.
Can ROI be used for non-financial decisions?
Yes. ROI is widely used in marketing (revenue per ad spend), HR (productivity gains vs. training costs), and operations (efficiency gains vs. project costs). The principle — net gain divided by investment — applies universally.