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ROI Calculator

Calculate return on investment percentage, annualized ROI, and net profit — free, instant, no signup required.

ROI Calculator
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Annualized ROI
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Net Profit
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What is ROI?

Return on Investment (ROI) is one of the most widely used financial metrics to evaluate the efficiency or profitability of an investment. It measures the gain or loss generated relative to the amount of money invested, expressed as a percentage. A positive ROI means the investment made money; a negative ROI means a loss.

ROI is used across every domain of finance — stock markets, real estate, business projects, fixed deposits, mutual funds, and even personal financial decisions. This calculator helps you quantify both the simple ROI and the annualized (compound) ROI so you can compare investments of different sizes and durations on equal terms.

ROI Calculation Formula

The formula to calculate ROI is straightforward:

ROI (%) = ((Final Value − Investment) / Investment) × 100

Annualized ROI (%) = ((Final Value / Investment)^(1 / Years) − 1) × 100

Where:
  Final Value = The total value of the investment at the end
  Investment = The original amount invested
  Years = The total duration of the investment in years

For example, if you invested ₹1,00,000 and it grew to ₹1,50,000 over 3 years, the ROI is 50% and the annualized ROI (also called CAGR) is approximately 14.47% per year.

Simple ROI vs Annualized ROI

Simple ROI tells you the total percentage gain over the entire investment period, regardless of how long that period is. It is easy to understand but can be misleading when comparing investments of different durations — a 100% return in 20 years is far less impressive than 100% in 2 years.

Annualized ROI (also known as Compound Annual Growth Rate or CAGR) normalizes returns to a per-year basis. It answers the question: "What constant annual rate of return would have produced the same result?" This makes it much more useful when comparing investments held for different time periods. Always use annualized ROI when comparing any two investments of different durations.

How to Use This ROI Calculator

  1. Enter your investment amount: This is the original amount you invested — the principal or cost of the investment. Use the slider or type directly in the field.
  2. Enter the final value: This is the total value of the investment at the end, including the original investment plus all returns. If you invested ₹1 lakh and now have ₹1.5 lakh, enter ₹1,50,000.
  3. Set the time period: Enter how many years you held the investment. This is used to compute the annualized ROI.
  4. Read your results: The calculator instantly displays your total ROI percentage, annualized ROI per year, and absolute net profit in rupees — along with a visual doughnut chart showing the investment vs profit breakdown.

Importance of ROI in Investing

ROI is one of the simplest and most powerful tools for evaluating investment performance. Here is why it matters:

  • Comparing investment options: Whether you are evaluating stocks, real estate, or a business idea, ROI gives a standardized percentage that makes comparison straightforward.
  • Setting benchmarks: Knowing the average market return (say 12–15% CAGR for Indian equities over the long run) helps you decide whether a given investment is worth pursuing.
  • Measuring past performance: Use ROI to review how your past investments have performed and identify what worked and what did not.
  • Business decision-making: Companies use ROI to evaluate capital expenditure projects, marketing campaigns, and new product launches.
  • Goal setting: If you need ₹50 lakh in 10 years and have ₹10 lakh today, you can calculate the ROI needed and choose investments that can realistically deliver it.

Advantages of Using an Online ROI Calculator

  • Instant results: No manual formula calculations — get ROI, annualized ROI, and profit in real time as you adjust the sliders.
  • Compare scenarios: Try different investment amounts or holding periods to see how each variable changes your returns.
  • Both ROI metrics together: Most tools show only one metric; this calculator shows both simple and annualized ROI side by side so you never lose context.
  • Visual breakdown: The doughnut chart makes it easy to visualize how much of your final value is original investment versus profit.
  • No data collection: This calculator runs entirely in your browser. Your financial data is never sent to any server.

Frequently Asked Questions

A "good" ROI depends on the type of investment and the risk involved. For equity mutual funds in India, an annualized ROI of 12–15% over the long term is generally considered good. For fixed deposits or government bonds, 6–8% may be considered acceptable given the lower risk. Real estate in metros has historically delivered 8–12% annualized. As a rule of thumb, any investment should at minimum beat inflation (currently 5–7% in India) to preserve your purchasing power. The higher the risk of an investment, the higher the ROI you should demand to justify taking that risk.
ROI (Return on Investment) is a broad, simple measure of total gain or loss over the entire investment period. It does not account for the time dimension. CAGR (Compound Annual Growth Rate) is essentially the annualized version of ROI — it calculates the steady annual rate that would have grown your investment from the initial value to the final value over the given period. They use the same inputs, but CAGR assumes compounding and expresses returns on a per-year basis, making it more useful for comparing investments of different durations. In fact, the "Annualized ROI" shown in this calculator is mathematically identical to CAGR.
Yes, ROI can absolutely be negative. A negative ROI means the final value of your investment is less than what you originally invested — in other words, you made a loss. For example, if you invested ₹1,00,000 and your portfolio is now worth only ₹80,000, your ROI is -20%. Negative ROI can happen with stocks, mutual funds, real estate, or any market-linked investment due to market downturns, poor investment choices, or macroeconomic factors. This is why diversification and a long investment horizon are important risk management strategies.
For stocks, the ROI calculation should include both price appreciation and dividends received. Total gain = (Current Price − Purchase Price) + Dividends Received. Then ROI = (Total Gain / Purchase Price) × 100. For example, if you bought a stock at ₹500, it is now at ₹700, and you received ₹20 in dividends, your total gain is ₹220 and ROI is 44%. Use this calculator by entering your total purchase cost as the Investment Amount and (current market value + total dividends received) as the Final Value. For multiple stock purchases at different prices, use the total cost basis and total current value.