Calculate your Return on Investment (ROI), net profit and annualized returns.
ROI (Return on Investment) is a key performance metric that measures the profitability of an investment relative to its cost. Expressed as a percentage, ROI helps investors and businesses compare different investments and make informed decisions. Our ROI calculator online computes your return instantly from any investment data.
ROI = ((Final Value − Initial Investment) / Initial Investment) × 100. For example, if you invested Rs. 1,00,000 and received Rs. 1,40,000 back: ROI = ((1,40,000 − 1,00,000) / 1,00,000) × 100 = 40%. A positive ROI means profit; negative means loss.
A 50% ROI over 10 years is very different from 50% ROI in 1 year. Annualized ROI (CAGR) accounts for time: CAGR = (Final Value / Initial Value)^(1/years) − 1. Comparing annualized returns allows fair comparison between investments held for different time periods.
In business: marketing ROI measures revenue generated per rupee spent on advertising. In real estate: ROI includes rental income plus property appreciation minus costs. In education: ROI compares lifetime earnings increase from a degree against tuition and opportunity costs. Each context requires adjusting the formula to include all relevant costs and returns.
ROI ignores the time value of money — Rs. 1 lakh received today is worth more than Rs. 1 lakh received in 5 years. It also ignores risk — two investments with the same ROI may have very different risk profiles. For complex investment decisions, use ROI alongside NPV (Net Present Value) and IRR (Internal Rate of Return) for a complete picture.
ROI (Return on Investment) measures the profitability of an investment as a percentage of the original cost. It helps compare different investment options.
ROI = ((Final Value − Initial Investment) / Initial Investment) × 100. A positive ROI means profit; a negative ROI means a loss.
A good ROI varies by industry and investment type. Stock market investments typically aim for 7-10% annual ROI. Real estate often targets 8-12%.
ROI does not account for time, risk, or the time value of money. A 50% ROI over 10 years is less impressive than 50% ROI in 1 year.
