ROI Calculator (Return on Investment)
Calculate the return on any investment as a percentage — total ROI and, over a holding period, the annualized ROI (CAGR) that makes investments comparable.
Investment & Return
Set to 0 to skip annualized
Return on Investment
50.00%
Annualized: 14.47% · Profit: ₹50,000
How It Works
Return on Investment (ROI) measures how much you gained (or lost) relative to what you put in, expressed as a percentage. The basic formula is the net profit divided by the cost of the investment, times 100 — so turning ₹1 lakh into ₹1.5 lakh is a 50% ROI. Total ROI alone can be misleading when comparing investments held for different lengths of time: a 50% return over one year is far better than 50% over ten years. That is why the annualized ROI (equivalent to CAGR) matters — it converts the total return into a steady per-year rate using the holding period, letting you compare a 6-month trade against a 5-year investment on equal terms. ROI is versatile and used everywhere — stocks, real estate, business projects, marketing campaigns — but it ignores risk and (in its simple form) the timing of cash flows, so use it alongside other measures for big decisions.
Formula
ROI % = (Amount Returned − Amount Invested) ÷ Amount Invested × 100. Annualized ROI = (Returned ÷ Invested)^(1/years) − 1.
Frequently Asked Questions
How do I calculate ROI?
ROI % = (Gain − Cost) ÷ Cost × 100. If you invest ₹1,00,000 and it becomes ₹1,50,000, ROI = (50,000 ÷ 1,00,000) × 100 = 50%.
What is annualized ROI and why use it?
Annualized ROI (CAGR) expresses your total return as a steady yearly rate over the holding period. It lets you fairly compare investments held for different durations — a 50% return in 1 year (50% annualized) beats 50% over 5 years (~8.4% annualized).
What is a good ROI?
It depends entirely on the asset class, risk, and time period — there is no universal benchmark. Compare an investment's ROI to alternatives with similar risk and duration, and to inflation, rather than to a fixed target.
Does ROI account for risk?
No. ROI measures return only, not the risk taken to achieve it. Two investments can have the same ROI with very different risk. Use ROI alongside risk measures for important decisions.
Can ROI be negative?
Yes — if the amount returned is less than the amount invested, ROI is negative, representing a loss. For example, ₹1,00,000 becoming ₹80,000 is a −20% ROI.