ROI Calculator

Calculate Return on Investment from your investment amount and final value.

Investment Amount (₹) Amount Received / Final Value (₹)

What is ROI (Return on Investment)?

Return on Investment (ROI) is a financial metric used to evaluate the profitability of an investment. It measures the gain or loss generated relative to the amount invested. ROI is expressed as a percentage and is one of the most widely used performance indicators in business, finance, and personal investing. A positive ROI means the investment gained value, while a negative ROI means it lost value.

ROI Formula

The formula for ROI is: ROI = ((Final Value − Investment Amount) / Investment Amount) × 100. This can also be written as ROI = (Net Profit / Cost of Investment) × 100. For example, if you invested ₹1,00,000 and received ₹1,30,000, your ROI is ((1,30,000 − 1,00,000) / 1,00,000) × 100 = 30%.

How to Use This Calculator

1. Enter the total amount you invested.

2. Enter the amount received or the current/final value of your investment.

3. Click "Calculate ROI" to see the ROI percentage, net profit or loss, and investment amount.

Where is ROI Used?

ROI is used across many domains:

Business: To evaluate the profitability of marketing campaigns, new projects, or capital expenditures.

Real Estate: To measure returns on property investments including rental income and appreciation.

Stocks & Mutual Funds: To assess the performance of portfolio investments over a given period.

Personal Finance: To compare different investment options like FDs, PPF, gold, or equity.

Frequently Asked Questions

What is a good ROI?

A "good" ROI depends on the type of investment and the time frame. For stock market investments in India, an ROI of 12-15% per year is considered good. For real estate, 8-12% annually is typical. For business projects, an ROI above the cost of capital (usually 10-15%) is desirable.

What is the difference between ROI and CAGR?

ROI gives the total return as a percentage without considering the time period. CAGR (Compound Annual Growth Rate) annualises the return, making it useful for comparing investments held for different durations. For example, a 50% ROI over 5 years is different from 50% ROI over 1 year. CAGR would show this difference clearly.

Can ROI be negative?

Yes, ROI is negative when the final value is less than the invested amount, meaning you incurred a loss. For example, if you invested ₹1,00,000 and received back ₹80,000, the ROI is −20%.