ROI Calculator

Calculate your Return on Investment instantly

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The Ultimate ROI Calculator

Our free ROI (Return on Investment) Calculator helps investors and business owners measure the profitability of their investments. Whether you're evaluating stocks, real estate, business ventures, or marketing campaigns, this tool provides instant calculations for net return, total ROI, and annualized ROI.

Did you know? The concept of ROI dates back to the early 20th century when DuPont executives developed it to evaluate capital investments. Today it's one of the most important financial metrics worldwide!

Why Investors Love This Calculator

Thousands of users rely on our ROI Calculator because:

Real-World Applications

Here are some common ways people use our ROI Calculator:

1. Stock Market Investing

Calculate your stock portfolio performance. Rs.50,000 invested growing to Rs.75,000 over 3 years = 50% total ROI (14.47% annualized).

2. Real Estate

Evaluate property investments. Rs.25,00,000 property sold for Rs.35,00,000 after 5 years = 40% ROI (6.96% annualized).

3. Business Investments

Analyze business ventures. Rs.10,00,000 investment returning Rs.15,00,000 in 2 years = 50% ROI (22.47% annualized).

4. Marketing Campaigns

Measure campaign effectiveness. Rs.50,000 ad spend generating Rs.2,00,000 in sales = 300% ROI (no time component needed).

5. Education Investments

Calculate ROI on education. Rs.5,00,000 degree leading to Rs.10,00,000 salary increase over 10 years = 100% ROI (7.18% annualized).

The Math Behind ROI Calculations

While our calculator does the work for you, here's how the calculations work:

1. Net Return

Formula: Final Value - Initial Investment

Example: Rs.1,50,000 - Rs.1,00,000 = Rs.50,000 net return

2. ROI (Return on Investment)

Formula: (Net Return รท Initial Investment) ร— 100

Example: (Rs.50,000 รท Rs.1,00,000) ร— 100 = 50% ROI

3. Annualized ROI

Formula: [(1 + ROI)^(1/years)] - 1 ร— 100

Example: [(1 + 0.5)^(1/3)] - 1 ร— 100 = 14.47% annualized

Frequently Asked Questions

What is a good ROI percentage?

A "good" ROI depends on the investment type and risk. Generally: 7-10% is good for low-risk investments, 10-15% for moderate risk, and 15%+ for high-risk ventures. Compare to benchmarks in your industry.

What's the difference between ROI and annualized ROI?

ROI shows total return over the entire period. Annualized ROI shows the equivalent yearly return, which allows comparison between investments of different durations.

Should I include ongoing costs in initial investment?

For accurate ROI, include all costs associated with the investment. For ongoing costs, either add them to initial investment or subtract from final value, depending on when they occurred.

Can ROI be negative?

Yes, negative ROI means you lost money on the investment. Our calculator shows this in red to alert you to poor-performing investments.

How do I calculate ROI for multiple investments?

Calculate each investment separately, or sum all initial investments and final values for aggregate ROI. For different time periods, annualized ROI is most comparable.