ROI Calculator — Return on Investment Calculator
Measure investment profitability with ROI and annualized ROI. Compare multiple investments side by side. Calculate total ROI, growth multiple, and annual returns.
ROI Calculator
Return on Investment
ROI Results
Return on Investment (ROI)
+80.00%
Invested
₹1,00,000
Current Value
₹1,80,000
What is ROI?
Return on Investment (ROI) measures the profitability of an investment as a percentage of the original cost. It tells you how much you gained or lost relative to what you invested.
ROI Formula
ROI = (Current Value - Cost) / Cost × 100
Annualized ROI
Annualized ROI = (FV/PV)1/n - 1
Annualized ROI (same as CAGR) is more useful for comparing investments across different time periods. A 100% ROI over 10 years is ~7.2% annualized, while 100% over 3 years is ~26% annualized.
When to Use ROI
- Stock investments — Compare returns across different stocks
- Real estate — Evaluate property investment returns
- Business decisions — Assess profitability of business investments
- Marketing campaigns — Measure return on ad spend (ROAS)
- Education — Evaluate return on education investment
Limitations of ROI
- Doesn't account for time — use annualized ROI instead
- Ignores risk — high ROI may come with high risk
- Doesn't consider opportunity cost
- Doesn't factor inflation or taxes
Frequently Asked Questions
What is a good ROI?
A good ROI depends on context. For stocks in India, 12-15% annualized is considered good. For real estate, 8-12% including rental yield. For business investments, anything above 15-20% is attractive. Always compare ROI with risk-free alternatives like FDs (6-7%).
What is the difference between ROI and CAGR?
ROI shows the total return as a percentage without considering time. CAGR (Compound Annual Growth Rate) is the annualized version of ROI. A 200% ROI over 5 years = 24.57% CAGR. For comparing investments, always use annualized ROI / CAGR.
Can ROI be negative?
Yes, ROI is negative when you lose money. If you invested ₹1 lakh and the current value is ₹80,000, your ROI is -20%. A negative ROI means the investment lost value. However, for equity investments, negative short-term ROI often turns positive over longer periods.
How do I calculate ROI on real estate?
For real estate, include all costs: purchase price, stamp duty, registration, renovation, and maintenance. For returns, include the sale price plus total rental income received. ROI = (Total Returns - Total Costs) / Total Costs × 100.
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