ROI Calculator
ROI tells you how much you gained or lost relative to what you invested. The annualised figure lets you compare investments held for different lengths of time.
Results
ROI
45%
- Gain or loss
- ₹45,000
- Annualised return
- 13.19%
- Same as CAGR
- Growth multiple
- 1.45 ×
₹1,00,000.00 became ₹1,45,000.00: a gain of ₹45,000.00, an ROI of 45%, or 13.19% a year over 3 years.
Show the calculation steps
- Gain = final value − amount invested = ₹1,45,000.00 − ₹1,00,000.00 = ₹45,000.00.
- ROI = gain ÷ amount invested × 100 = 45%.
- Annualised return = (final ÷ invested)^(1 ÷ years) − 1 = (1.45)^(1 ÷ 3) − 1 = 13.19%.
- Include every cost (fees, taxes, extra contributions) in the amount invested for an honest ROI.
ROI versus annualised return
ROI is the total percentage return over the whole holding period, so an ROI of 45% after three years is very different from 45% after one year. The annualised return converts it to a yearly rate so it can be compared with other options.
What to include
To get an honest ROI, include all costs in the amount invested, such as fees, brokerage and taxes paid, and include any income received in the final value.
Formula
ROI = (Final value − Amount invested) ÷ Amount invested × 100
Annualised return = (Final ÷ Invested)^(1 ÷ years) − 1
Where:
- Final value
- = What the investment is worth at the end
- Amount invested
- = Total cost of the investment
- years
- = Holding period in years
Example calculation
₹1,00,000 grew to ₹1,45,000 over 3 years
Inputs
- Amount Invested
- ₹1,00,000
- Final Value
- ₹1,45,000
- Holding Period
- 3 years
Result
- ROI
- 45%
- Gain or loss
- ₹45,000
- Annualised return
- 13.19%
- Growth multiple
- 1.45 ×
Step-by-step
- Gain = final value − amount invested = ₹1,45,000.00 − ₹1,00,000.00 = ₹45,000.00.
- ROI = gain ÷ amount invested × 100 = 45%.
- Annualised return = (final ÷ invested)^(1 ÷ years) − 1 = (1.45)^(1 ÷ 3) − 1 = 13.19%.
Important notes
- Results are estimates based on the values you enter. They assume the rates stay constant and exclude taxes and fees unless stated.
Disclaimer: This calculator provides estimates for informational purposes and should not be considered financial advice. Actual figures from lenders, banks and investment products can differ because of fees, taxes, rounding rules and changing rates. Consult a qualified professional before making financial decisions.
Frequently asked questions
How do I calculate ROI?
ROI = (final value − amount invested) ÷ amount invested × 100.
What is a good ROI?
It depends on risk and time. Compare the annualised return with alternatives such as a fixed deposit or an index fund.
Can ROI be negative?
Yes. A final value below the amount invested gives a negative ROI (a loss).
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