ROI Calculator — Return on Investment

Calculate ROI, annualised return and CAGR for any investment.

About this calculator

Return on Investment (ROI) measures the profitability of an investment as a percentage of the original capital invested. It is the universal yardstick used to compare investment opportunities across asset classes, projects, and business decisions.

Two flavours of ROI are commonly used. Simple ROI is total return over the period as a percentage — useful for ranking outcomes but misleading when comparing investments of different durations. Annualised ROI (CAGR — Compound Annual Growth Rate) normalises returns to a per-year figure, making short and long investments directly comparable.

Formula

ROI = \frac{\text{Final} - \text{Initial}}{\text{Initial}} \times 100 \;;\; CAGR = \left(\frac{F}{I}\right)^{1/t} - 1

  • Initial — Original amount invested
  • Final — Value after the investment period
  • t — Time in years (used for CAGR)

Worked example

Inputs: Invested ₹1,00,000 · Now worth ₹2,15,000 · Duration: 7 years

  1. Net gain = 2,15,000 − 1,00,000 = ₹1,15,000
  2. Simple ROI = 1,15,000 ÷ 1,00,000 × 100 = 115%
  3. CAGR = (2.15)^(1/7) − 1 = 11.55% per year

Frequently asked questions

Is a 50% ROI good?

Without context, you cannot tell. A 50% ROI over 1 year is excellent; 50% over 10 years is roughly 4% annualised — below average. Always compare ROI on an annualised basis (CAGR) to the appropriate benchmark for the asset class (10–12% for equity, 6–8% for debt, 8–10% for real estate over long periods).

What is the difference between ROI and IRR?

ROI assumes a single starting investment and a single ending value. Internal Rate of Return (IRR) is more sophisticated — it handles multiple cash flows in and out over time (additional investments, periodic withdrawals). For SIPs and businesses with ongoing capex/cashflows, IRR is more accurate than ROI.

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