ROI Calculator
Calculate Return on Investment.
ROI Calculator
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Yrs
ROI
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Net Profit / Loss—
Annualized Return—
Total Return—
An ROI calculator measures how much profit or loss you made relative to the original investment. It is a quick way to evaluate business spends, marketing campaigns, assets, and personal investments. For deeper decisions across time periods, pair ROI with CAGR or IRR metrics.
Understanding ROI
ROI gives a simple percentage return by comparing net gain to investment cost. It is easy to interpret, which makes it useful for first-level comparisons. However, ROI alone does not account for time, risk, or cash-flow timing.
ROI formula
ROI (%) = (Net Profit / Investment Cost) x 100, where Net Profit = Final Value - Investment Cost.
Where ROI is helpful
- Evaluating ad campaign performance.
- Comparing project profitability in small businesses.
- Assessing flip investments such as real estate improvements.
- Quick screening before deeper financial analysis.
How to use this ROI calculator
- Enter total investment cost.
- Enter final value or total returns received.
- Review net profit and ROI percentage.
- Compare with required or benchmark return.
- Use time-based metrics if horizon differs across options.
Worked example
You invest Rs 2,50,000 in a project and receive Rs 3,25,000 after completion. Net profit is Rs 75,000. ROI = (75000/250000) x 100 = 30%.
Frequently Asked Questions
Not always. You must also consider time period, risk, liquidity, taxes, and probability of achieving the projected return.
It can be used for a quick snapshot, but CAGR and XIRR are typically better for fair comparisons across periods and cash flows.
Negative ROI means the final value is below the initial cost, indicating a loss on investment.
For accurate analysis, use net values after accounting for fees, transaction costs, taxes, and maintenance expenses.