ROI Calculator

Measure how much an investment earned relative to what it cost, and compare investments of different lengths with annualised ROI.

ROI formula

ROI = (Final value − Amount invested) ÷ Amount invested × 100 Annualized ROI = (Final value ÷ Amount invested)^(1 ÷ years) − 1

Example

You invest ₹1,00,000 and get back ₹1,50,000 after 3 years. The net gain is ₹50,000, so ROI is 50%. Spread over 3 years with compounding, the annualized ROI is 14.47%, which is the number to compare with an FD rate or fund return.

Why annualized ROI matters

A 50% return over 3 years and a 50% return over 10 years look the same as simple ROI, but they are very different investments: 14.5% a year versus 4.1% a year. Always compare investments on an annualized basis (also called CAGR).

What to include

For a fair ROI, include every cost in the amount invested (fees, brokerage, installation, training) and everything you received in the final value (sale proceeds, dividends, rent or cost savings). For marketing ROI, use the gross profit generated by a campaign, not the revenue.

Frequently asked questions

What is a good ROI?

It depends on risk and time. Compare against safe alternatives: if an FD earns about 7% a year, a riskier investment should aim for a clearly higher annualized ROI.

What is the difference between ROI and CAGR?

ROI is the total return over the whole period. CAGR (annualized ROI) is the steady yearly growth rate that would produce the same result. The CAGR Calculator does this in more detail.

Results are for planning and information only and are not accounting or financial advice. Check important figures with your accountant.