What is ROI (Return on Investment)?

ROI (Return on Investment) is a performance metric used to evaluate the efficiency or profitability of an investment. It measures the return of an investment relative to its cost, expressed as a percentage. A positive ROI means you earned more than you invested; a negative ROI means you lost money.

How is ROI calculated?

ROI is calculated using the formula: ROI (%) = ((Final Value - Initial Investment) / Initial Investment) × 100. For example, if you invested ₹10,000 and received ₹13,000, your ROI = ((13000 - 10000) / 10000) × 100 = 30%.

What is a good ROI percentage?

A 'good' ROI depends on the type of investment and the time period. For stock market investments in India, an annual ROI of 12–15% is generally considered good. For real estate, 8–12% annual ROI is typical. For business investments, ROI above 20% is often considered excellent.

What is Annualized ROI?

Annualized ROI adjusts the total ROI to reflect a per-year rate, allowing you to compare investments held for different time periods. The formula is: Annualized ROI = ((1 + ROI/100)^(1/Years) - 1) × 100. This is useful when comparing a 2-year investment vs a 5-year investment on equal terms.

Yes, ROI can be negative. A negative ROI means your final value is less than your initial investment — i.e., you made a loss. For example, investing ₹1,00,000 and receiving ₹80,000 back gives an ROI of -20%, meaning you lost 20% of your investment.

ROI Calculator – Return on Investment Calculator

📈 Return on Investment Calculator

Initial Investment

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Final Value / Return

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Additional Costs (optional)

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Investment Duration (optional)

Return on Investment (ROI)

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Net Profit / Loss

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Total Investment Cost

Investment Multiple

Annualized ROI

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Break-Even Value

Gain on Final Value

How to Use the ROI Calculator

Enter Initial Investment Input the total amount you invested upfront in ₹ (Rupees).

Enter Final Value / Return Enter the final value of your investment or the total revenue/return received.

Add Additional Costs (Optional) Include any extra expenses like brokerage, maintenance, or operating costs.

Set Duration (Optional) Enter the investment period in years or months to calculate the annualized ROI.

Click "Calculate ROI" Instantly see your ROI %, net profit, investment multiple, and more.

About This ROI Calculator

This free ROI Calculator helps you quickly calculate the Return on Investment for any financial decision — be it stock market investments, mutual funds, real estate, business ventures, or marketing campaigns. Simply enter your initial investment and the final value to get an accurate ROI percentage.

ROI Formula: ROI (%) = ((Final Value − Total Cost) ÷ Total Cost) × 100

Our investment return calculator goes beyond just the basic ROI — it also shows you the net profit or loss, your investment multiple (e.g., 1.3x), and when a duration is provided, an annualized ROI so you can compare investments across different time horizons. Whether you're evaluating a ₹10,000 SIP return or a ₹50 lakh real estate deal, this tool gives you a clear financial picture in seconds.

Use this calculate ROI tool before making any investment decision to understand potential returns and set realistic expectations.

Frequently Asked Questions

ROI (Return on Investment) is a key financial metric used to measure the profitability of an investment relative to its cost. Expressed as a percentage, it tells you how much you earned (or lost) for every rupee invested. A positive ROI means you made a profit; a negative ROI means you incurred a loss. It's one of the most widely used metrics in finance, business, and marketing.

The standard ROI formula is: ROI (%) = ((Final Value − Initial Investment) ÷ Initial Investment) × 100. If you have additional costs, the formula becomes: ROI (%) = ((Final Value − Total Cost) ÷ Total Cost) × 100, where Total Cost = Initial Investment + Additional Costs. For example, investing ₹1,00,000 and getting back ₹1,30,000 gives an ROI of 30%.

A good ROI depends on the asset class and time period. For the Indian stock market (Nifty 50), a historical annual ROI of 12–15% is considered good. Mutual funds typically offer 10–14% CAGR over long periods. Real estate in major Indian cities yields 6–12% annually. Fixed Deposits offer 6–7.5% p.a. For business investments, an ROI above 20–25% per year is generally excellent. Always compare ROI against inflation (currently ~5–6% in India) to assess real returns.

Annualized ROI (also called CAGR — Compound Annual Growth Rate) adjusts your total ROI to a per-year rate. This is crucial when comparing investments held for different durations. For instance, a 60% ROI over 4 years is actually less impressive than a 30% ROI over 1 year. The formula is: Annualized ROI = ((1 + ROI/100)^(1/Years) − 1) × 100. Our calculator automatically computes this when you enter an investment duration.

The Investment Multiple (also called MOIC — Multiple on Invested Capital) shows how many times your money has grown. It is calculated as: Multiple = Final Value ÷ Total Investment Cost. For example, if you invested ₹50,000 and received ₹1,50,000, your investment multiple is 3x — meaning your money tripled. A multiple of 1x means you broke even, below 1x means a loss, and above 1x means a profit.