ROI Calculator

Measure the efficiency of your business investments instantly.

Your ROI

50.00%

Investment Gain

₹ 5,000.00

ROI, CAGR & Annualized Return — Explained

ROI (Total Return)
(Return − Cost) ÷ Cost × 100

Total % gain or loss. Does not account for time period — a 50% ROI over 10 years is very different from 50% in 1 year.

Annualized ROI
[(1 + ROI/100)^(1/n) − 1] × 100

Average yearly return over n years. Better for comparing investments held for different durations.

CAGR (Compound Annual)
(End Value ÷ Start)^(1/n) − 1

Smoothed yearly growth rate assuming compounding. The gold standard for comparing multi-year investments.

Example: ₹1,00,000 invested → ₹1,50,000 after 3 years.   ROI = 50%  |  Annualized ROI = 14.47%/year  |  CAGR = 14.47%/year

ROI Benchmarks by Investment Type — India

Average historical returns for common investment categories. Used as a benchmark when evaluating business or personal investments.

Investment TypeTypical ROI / CAGRRisk Level
Savings Account3.5–4.0%Very Low
Fixed Deposit (1–5 yr)6.5–9.0%Very Low
Debt Mutual Funds6.0–8.5%Low
Real Estate (Rental Yield)2.5–4.5% yieldMedium
Real Estate (Appreciation)8–12% CAGRMedium
Gold8–10% CAGR (long-term)Medium
Nifty 50 (Equity Index)12–14% CAGR (10-yr avg)High
Small Cap / Mid Cap MFs14–18% CAGR (10-yr avg)High
Business Investment15–30%+ (varies widely)High

Historical returns do not guarantee future performance. Always factor in inflation (currently ~5%) to assess real returns.

ROI in Business — Common Applications

Marketing ROI

Spend ₹50,000 on a Google Ads campaign, generate ₹2,00,000 in revenue. Marketing ROI = (2,00,000 − 50,000) ÷ 50,000 × 100 = 300%. A ratio of 5:1 (500%) is a common digital marketing benchmark.

Equipment / CapEx ROI

Buy a ₹10L machine that saves ₹3L/year in labour costs. Simple payback = 3.3 years. ROI after 5 years = (15L − 10L) ÷ 10L = 50%. Use annualized ROI to compare against alternatives.

HR / Training ROI

₹2L training investment increases team productivity by ₹8L/year. ROI = (8L − 2L) ÷ 2L = 300%. Soft ROI (retention, morale) is often not captured in basic calculations.

E-Commerce / Website ROI

₹5L website redesign improves conversion rate by 1%, generating ₹25L/year in extra revenue. ROI = (25L − 5L) ÷ 5L = 400% in year one alone.

Frequently Asked Questions

ROI (%) = (Net Gain ÷ Cost of Investment) × 100, where Net Gain = Amount Returned − Amount Invested. Example: Invested ₹1,00,000, received ₹1,30,000 → ROI = (30,000 ÷ 1,00,000) × 100 = 30%.

A good ROI depends on the investment type and risk. In India: FDs offer 6.5–9%, equity mutual funds 12–15% CAGR over 10 years, real estate 8–12%. For business investments, 20%+ is generally strong. Always compare ROI against inflation (~5%) to assess real purchasing power gains.

ROI gives the total % return over the whole period without considering time. CAGR (Compound Annual Growth Rate) gives the per-year equivalent growth assuming compounding. For multi-year comparisons, CAGR is far more useful. Example: 50% ROI over 3 years = 14.47% CAGR.

Annualized ROI = [(1 + ROI/100)^(1/n) − 1] × 100, where n = number of years. Example: 50% total ROI over 3 years → Annualized ROI = [(1.50)^(1/3) − 1] × 100 = 14.47%/year. This allows fair comparison between investments held for different durations.

Yes. A negative ROI means you lost money. Example: Invested ₹1,00,000, received ₹80,000 → ROI = −20%. Negative ROI should trigger a review of the investment decision, cost structure, or market approach before doubling down.

Marketing ROI = (Revenue from Campaign − Campaign Cost) ÷ Campaign Cost × 100. Industry benchmark: 5:1 ratio (500% ROI) is considered good for digital marketing. Example: ₹50,000 campaign generates ₹3,00,000 revenue → Marketing ROI = (2,50,000 ÷ 50,000) × 100 = 500%.

Payback period = Initial Investment ÷ Annual Net Cash Inflow. It tells you how many years to recover your investment. Example: ₹10L investment returns ₹3L/year → Payback = 3.33 years. Unlike ROI, payback period ignores returns beyond that point but is useful for liquidity planning.

Basic ROI does not. Real ROI = Nominal ROI − Inflation Rate. Post-tax ROI deducts applicable capital gains tax (10% LTCG for equity > ₹1.25L, 20% for real estate). For accurate comparisons, always compute post-tax, inflation-adjusted ROI — especially for long-term investments.
Reviewed 9 September 2026 Use these quick actions with the result shown on this page.

Transparent calculation

Business formula and assumptions

MethodROI % = (final value − investment cost) ÷ investment cost × 100
  1. Enter values from the same accounting period.
  2. Review the formula and calculated result.
  3. Compare scenarios and validate decisions against complete financial records.

Important assumption: The output is a planning estimate and does not replace complete accounts, valuation or professional advice.

Private by design, useful as an estimate

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