What is an ROI Calculator?
An ROI (return on investment) calculator measures how much an investment has gained or lost compared with what was put in, both as a total percentage and as an annualised rate per year.
ROI Calculator turns any before-and-after value into two figures: the total return and the yearly return. The yearly figure is what makes investments held for different lengths of time comparable.
How does the ROI Calculator work?
ROI compares what you got back with what you put in. The annualised figure spreads that return evenly over the holding period, so investments held for different lengths of time can be compared.
ROI = (Final value − Amount invested) ÷ Amount invested × 100
Annualised ROI = (Final ÷ Invested)^(1 ÷ years) − 1Worked example using the starting values on this page:
- Amount invested
- ₹1,00,000
- Amount returned
- ₹1,50,000
- Investment period
- 3.0 years
- Amount invested
- ₹1,00,000
- Total ROI
- 50.00%
- Gain
- ₹50,000
- Annualised ROI
- 14.47%
How to use the ROI Calculator
- Enter the amount invested (anywhere from ₹1,000 to ₹10,00,00,000). Type it in the box or drag the slider.
- Enter the amount returned (anywhere from ₹0 to ₹1,00,00,00,000). Type it in the box or drag the slider.
- Enter the investment period (anywhere from 0.5 years to 40.0 years). Type it in the box or drag the slider.
- Read the total roi at the top of the results, then check the breakdown below it.
- Change one input at a time to compare scenarios, and note how much each change moves the result.
Benefits of using the ROI Calculator
- Turns raw before-and-after numbers into a figure you can compare across investments.
- Shows the working, so the result is easy to verify in a spreadsheet.
- Helps you judge performance fairly by accounting for time and costs.
- Free, instant and private: nothing you enter is stored.
Mistakes to avoid with the ROI Calculator
The common mistake is comparing total ROI figures over different time periods without annualising them.
Total ROI shows overall growth; annualised ROI makes investments held for different periods comparable.
Helpful checks before using the result
These checks make a roi more useful in practice.
- Start with a realistic base case rather than the first value that fits the range slider.
- Change one major assumption at a time so the effect stays easy to interpret.
- Use the result to compare scenarios, not as a final provider quote or guaranteed outcome.
- Verify rates, rules, and product terms separately before acting on the estimate.
ROI, annualised ROI and XIRR
Three related measures that answer slightly different questions.
- Total ROI says how much the money grew overall, without regard to time: 50% over 3 years and 50% over 10 years look the same.
- Annualised ROI (the same as CAGR) spreads that growth evenly per year, so 50% over 3 years is about 14.5% a year.
- If you invested in instalments or took money out along the way, use XIRR instead, because ROI assumes one amount in and one amount out.
Examples
Same formula, different contexts.
Property
Bought for ₹40 lakh, sold for ₹60 lakh after 6 years: 50% total ROI, about 7% a year, before costs and taxes.
Shares
₹1 lakh grew to ₹1.5 lakh in 3 years: 50% total, about 14.5% a year.
Business spend
A ₹2 lakh campaign that brought ₹3 lakh in profit: 50% ROI on the spend.
ROI Calculator FAQs
How do you calculate ROI?
ROI = (amount returned − amount invested) ÷ amount invested × 100. ₹1 lakh that becomes ₹1.5 lakh is a 50% ROI.
What does a 10% ROI mean?
You earned ₹10 for every ₹100 invested. Whether that is good depends on how long it took: 10% in one year is very different from 10% over five years.
How do I calculate ROI over 10 years?
Work out the total ROI, then annualise it: (final ÷ invested)^(1 ÷ 10) − 1. Doubling money in 10 years is a 100% total ROI but about 7.2% a year.
Should costs and taxes be included?
For a realistic figure, yes. Subtract brokerage, fees and taxes from the amount returned, or add them to the amount invested.
