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FinCalc India

ROI Calculator

Return on Investment (ROI) measures how much you gained or lost relative to what you put in. It is the simplest way to compare the profitability of very different investments or projects.

Enter the amount invested and the amount you received back. Add a holding period to also get the annualised ROI.

Assumptions used
  • Amount returned is the total of all money received back.
  • Annualised ROI assumes a single investment and a single redemption.

Enter your details

₹
11,00,00,00,000
₹
01,00,00,00,000
years
050

Optional. Used only for the annualised ROI.

Results

ROI

60.00%

Net Profit
₹1,20,000
Annualised ROI
16.96%
Return Multiple
1.6x

ROI formula

ROI (%) = (Amount returned − Amount invested) ÷ Amount invested × 100

  • Net profit = Amount returned − Amount invested

When a holding period is given, the annualised ROI restates the total gain as a yearly compounded rate, using the CAGR form:

Annualised ROI = (Amount returned ÷ Amount invested)^(1 ÷ years) − 1

Worked example

  1. You invest ₹2,00,000 and receive ₹3,20,000 after 3 years.
  2. Net profit = ₹1,20,000; ROI = 1,20,000 ÷ 2,00,000 × 100 = 60%.
  3. Annualised ROI = (3,20,000 ÷ 2,00,000)^(1÷3) − 1 ≈ 17% per annum.

Strengths and limits of ROI

  • Simple and universal — works for stocks, property, a side business or a marketing spend.
  • Plain ROI ignores time, so always annualise when comparing investments of different lengths.
  • It ignores risk, liquidity, effort and taxes. Two investments with equal ROI are not equally good.

Include all cash flows

For an accurate figure, 'amount returned' should include every rupee you got back — sale proceeds plus dividends, rent or interest received — and 'amount invested' should include fees and charges.

This calculator is for education and illustration only. Results are estimates based on the inputs and assumptions shown and are not financial, investment, tax or legal advice. Verify figures with your bank, a registered adviser or the relevant government department before acting.

Frequently asked questions

What is a good ROI?

It depends on the risk and the time taken. A 60% ROI over 10 years is modest; the same over one year is excellent. Always compare the annualised ROI against a relevant benchmark.

What is the difference between ROI and annualised ROI?

ROI is the total percentage gain over the whole holding period. Annualised ROI converts that into an equivalent compounded yearly rate so you can compare different durations.

Does this ROI calculator account for tax?

No. Enter the post-tax amount returned if you want an after-tax ROI. Taxes, brokerage and other costs can materially change the real return.

Can ROI be negative?

Yes. If the amount returned is less than the amount invested, both the ROI and the net profit are negative, indicating a loss.

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