ROI Calculator
Calculate your investment ROI, net profit, and annualised return instantly.
📖 What is ROI?
Return on Investment (ROI) is a performance metric used to evaluate the efficiency or profitability of an investment. It measures how much return you received relative to the amount you put in, expressed as a percentage. A positive ROI means you made money; a negative ROI means you lost money.
ROI is one of the most universal metrics in finance because it allows you to compare returns across completely different types of investments - stocks, fixed deposits, real estate, business ventures, or even education. If your stock portfolio returned 45% over three years while an FD returned 21% over the same period, ROI tells you stocks were better - but CAGR tells you by how much per year (13.1% vs 6.6% annually).
Understanding ROI is essential for making informed financial decisions. It helps you identify which investments are working, when to cut losses, and how your portfolio compares to benchmarks like the Nifty 50 or Sensex.
📐 Formula
ROI = (Final Value - Initial Investment) / Initial Investment × 100
Net Profit = Final Value - Initial Investment
CAGR = (Final Value / Initial Investment)^(1/years) - 1
Where CAGR is the Compound Annual Growth Rate - the annualised ROI assuming compounding.
📖 How to Use This Calculator
1
Enter your Initial Investment - the total amount you invested.
2
Enter the Final Value - what the investment is worth now (or what you received when you sold).
3
Optionally enter the Investment Period in years to calculate annualised return (CAGR).
4
Click Calculate - ROI, profit/loss, and CAGR are displayed instantly.
💡 Example Calculations
Example 1 - Equity investment
1
Invested ₹2,00,000 in shares 3 years ago. Current value: ₹3,20,000.
2
ROI = (3,20,000 - 2,00,000) / 2,00,000 × 100 = 60%
3
Net Profit = ₹1,20,000
4
CAGR = (3,20,000 / 2,00,000)^(1/3) - 1 = 16.96% per year
Example 2 - Loss scenario
1
Invested ₹50,000 in a stock. Sold for ₹38,000 after 1 year.
2
ROI = (38,000 - 50,000) / 50,000 × 100 = -24%
3
Net Loss = ₹12,000
4
CAGR = -24% p.a.
5
To recover this loss, the investment would now need to gain 31.6% just to break even.
Frequently Asked Questions
What is a good ROI for investments?
A good ROI depends on the investment type and risk. For broad equity index funds, 8–14% annualised is historically typical. For fixed deposits or bonds, 3–6% is standard. For real estate, 5–12% annually (including rental yield and appreciation) is common. Always compare ROI against the risk taken.
What is the difference between ROI and CAGR?
ROI measures total percentage return without considering time. CAGR (Compound Annual Growth Rate) measures the annualised rate assuming compounding. For multi-year investments, CAGR is more useful than simple ROI.
Can ROI be negative?
Yes - a negative ROI means you lost money on the investment. For example, if you invested 100,000 and got back 80,000, your ROI is -20%. This calculator shows losses in red to make it clear.
Does ROI include taxes and fees?
By default, ROI is calculated on gross returns. For a more accurate picture, subtract taxes (short-term or long-term capital gains tax) and any brokerage or fund management fees from your final value before calculating.
How do I calculate ROI on a rental property?
For real estate: ROI = (Annual Rental Income + Appreciation - Expenses) / Total Investment × 100. Include acquisition costs, maintenance, property tax, and any loan interest in your expenses.
What is the ROI formula?
ROI = ((Final Value - Initial Investment) / Initial Investment) × 100. For example, if you invested ₹2,00,000 and the investment grew to ₹3,50,000: ROI = ((3,50,000 - 2,00,000) / 2,00,000) × 100 = 75%. For annualised ROI over multiple years, use CAGR instead of simple ROI.
What is a realistic ROI for different asset classes?
Historical average annualised returns: Indian equity index funds (Nifty 50) ~12–14% over 15+ years; US equity (S&P 500) ~10–12%; fixed deposits 6.5–7.5%; gold ~8–10% (varies significantly by period); real estate 6–12% (including rental yield and appreciation). Higher returns always come with higher volatility and risk.
How do taxes and fees affect actual ROI?
Net ROI after taxes and fees is always lower than gross ROI. For equity investments, deduct capital gains tax (STCG at 20% or LTCG at 12.5%). For mutual funds, deduct the expense ratio (0.1–2% per year depending on fund type). For real estate, deduct brokerage, stamp duty, and maintenance costs. Always calculate net-of-tax, net-of-fees ROI for accurate comparisons.
What is the difference between ROI and IRR?
ROI measures total percentage gain over an investment's life without accounting for timing of cash flows. IRR (Internal Rate of Return) accounts for the timing and size of each cash inflow and outflow, expressed as an annualised rate. For a single lump-sum investment held to maturity, ROI and annualised ROI (CAGR) are sufficient. For investments with multiple irregular cash flows - such as real estate with periodic rental income, or business investments with staged capital calls - IRR is the more accurate measure of true returns.
Can ROI be negative and what does that mean?
Yes. A negative ROI means you lost money on the investment. If you invested ₹1,00,000 and the value fell to ₹75,000, ROI = ((75,000 - 1,00,000) / 1,00,000) × 100 = -25%. Negative ROI is common in volatile assets like equities during downturns, speculative investments, and failed business ventures. A negative ROI does not always mean you should sell - short-term losses in diversified equity portfolios are normal and often recover over longer holding periods. Compare ROI in context of the investment's expected risk and time horizon.