ROI Calculator — Calculate Return on Investment
Calculate ROI (Return on Investment) instantly. Free online ROI calculator — enter investment cost and return to get ROI %.
How to Use
- Enter your initial investment amount.
- Enter the final value (return) from the investment.
- Enter the time period in years. Click Calculate to get ROI% and annualised return.
Formula
ROI (%) = ((Final Value − Initial Investment) / Initial Investment) × 100
Annualised ROI = ((Final Value / Initial Investment)^(1/Years) − 1) × 100
Example Calculation
Example: ₹1,00,000 invested, returns ₹1,50,000 in 3 years
| Parameter | Value |
|---|---|
| Initial Investment | ₹1,00,000 |
| Final Value | ₹1,50,000 |
| Net Profit | ₹50,000 |
| ROI | 50% |
| Annualised ROI | 14.47% |
Frequently Asked Questions
ROI (Return on Investment) is a performance metric used to evaluate the efficiency of an investment. It measures the return relative to the investment cost as a percentage.
A "good" ROI depends on the asset class and risk. Equity: 12–15%+ p.a., Real estate: 8–12% p.a., FD: 6–8% p.a. Always compare ROI relative to inflation and risk.
ROI measures total return regardless of time period. CAGR (Compound Annual Growth Rate) normalises return across years, making it better for comparing investments over different time periods.
Yes. If the final value is less than the initial investment, ROI is negative, indicating a loss. For example, investing ₹1 lakh and getting ₹80,000 back gives ROI = −20%.
Compare the ROI of different investment options and choose the one with the highest ROI adjusted for risk and liquidity. ROI > cost of capital means the investment creates value.