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ROI Calculator (Return on Investment)

Calculate return on investment and analyze profitability

Investment Details
₹1K ₹500K ₹10L
years
Additional Costs & Fees
%
Quick ROI Scenarios
20% Return
50% Return
100% Return
150% Return
ROI Analysis Results
ROI Percentage 45% Good

45,000

Forty five thousand rupees profit
Investment
Return
Total Investment: 105,000
Total Return: 150,000
Net Profit: 45,000
ROI Percentage: 42.86%
Annualized ROI: 7.41%
BREAK-EVEN: 105,000
Performance Comparison
12.5%
3-Year ROI
8.2%
10-Year Avg
Investment Insights

This investment beats inflation by 4.2% annually.

About ROI Calculator

Accurate ROI Calculation

Calculates Return on Investment percentage, net profit, and annualized returns.

Visual Comparison

Visual representation of investment vs return with performance charts.

Multiple Metrics

Calculates ROI percentage, annualized ROI, net profit, and break-even point.

Cost Analysis

Includes additional costs and fees for accurate profit calculation.

How to Calculate ROI

Enter Initial Investment

Enter the amount you initially invested or plan to invest.

Add Final Value

Enter the final value or return amount you received/expect.

Include Time & Costs

Add investment period and any additional costs or fees.

Analyze Results

Review ROI percentage, annualized returns, and net profit.

ROI Formula

ROI = [(Final Value - Total Investment) / Total Investment] × 100

Where Total Investment = Initial Investment + Additional Costs

ROI FAQs

What is a good ROI percentage?
A good ROI depends on the investment type. Generally, 7-10% annually is good for stocks, while real estate may target 4-8%. Always compare with inflation.
How is annualized ROI calculated?
Annualized ROI = [(1 + Total ROI)^(1/years)] - 1. This gives the average annual return rate over the investment period.
Should I include additional costs?
Yes! For accurate ROI, include all costs: transaction fees, maintenance, taxes, and any other expenses related to the investment.
What's the difference between ROI and profit?
Profit is the absolute amount gained (Final Value - Investment). ROI is the percentage return relative to the investment amount.
Can ROI be negative?
Yes! Negative ROI means you lost money on the investment. The final value is less than your total investment.
How does time affect ROI?
Longer investment periods typically allow for compounding returns. Annualized ROI helps compare investments with different timeframes.
Pro Tip

Compare ROI with inflation rate (typically 2-6%). Real ROI = Nominal ROI - Inflation Rate.

What is ROI (Return on Investment)?

ROI (Return on Investment) is a financial metric used to evaluate the profitability of an investment. It measures how much profit or loss you generate compared to the amount invested. ROI helps investors compare different investment opportunities and make smarter financial decisions.

ROI Formula

ROI = [(Final Value − Total Investment) ÷ Total Investment] × 100

Where Total Investment includes the initial investment amount plus any additional costs such as transaction fees, maintenance costs, or annual charges.

How This ROI Calculator Works

Why ROI is Important

ROI allows you to compare various investment options such as stocks, real estate, mutual funds, or business investments. A higher ROI indicates better profitability. However, risk level and inflation must also be considered.

What is a Good ROI?

A good ROI depends on the investment type and risk tolerance:

Always compare ROI with inflation to calculate real returns.

Frequently Asked Questions (FAQ)

What is the difference between ROI and profit?
Profit is the actual money earned. ROI is the percentage return relative to the total investment.
Can ROI be negative?
Yes. Negative ROI means the final value is less than the total investment, resulting in a loss.
What is annualized ROI?
Annualized ROI shows the average yearly return over a specific time period, making it easier to compare investments of different durations.
Should additional costs be included in ROI?
Yes. Including all associated costs ensures accurate ROI calculation and realistic profitability analysis.
Investment Tip

Always consider inflation, taxes, and risk before choosing an investment. Real ROI = Nominal ROI − Inflation Rate.