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ROI Calculator

Measure the efficiency of your business investments instantly.

Your ROI

50.00%

Investment Gain

₹ 5,000.00

Return on Investment (ROI) Calculator

The ROI Calculator is an essential metric for investors and business owners to evaluate the profitability of an investment. It helps you decide whether an investment is worth the risk.

What is ROI?

Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment. It measures the amount of return on a particular investment, relative to the investment's cost.
ROI = ((Net Return - Investment Cost) / Investment Cost) × 100

How to Calculate ROI?
  • Net Return: The total revenue generated from the investment minus the cost.
  • Investment Cost: The initial amount spent.
  • Percentage: The result is multiplied by 100 to get a percentage value.
Business Tip: A positive ROI means the investment has gained value. A negative ROI means it has lost value. Always aim for a high, positive ROI to ensure business growth.

Frequently Asked Questions

ROI is calculated as: ROI (%) = ((Net Profit) / Cost of Investment) × 100. For example, if you invested ₹1,00,000 and received ₹1,30,000 back, your ROI = ((30,000) / 1,00,000) × 100 = 30%.
A 'good' ROI varies by industry. For stock markets, 10-15% annually is considered healthy. For real estate, 8-12%. For business investments, anything above 15-20% is generally good. Always compare ROI against inflation (6-7% in India) to assess real returns.
ROI gives the total return percentage over the entire period. CAGR (Compound Annual Growth Rate) gives the annualized return, which is better for comparing investments with different time periods. For multi-year investments, CAGR is more meaningful.
Yes, a negative ROI means you lost money on the investment. For example, if you invested ₹1,00,000 and got back only ₹80,000, your ROI = -20%. This indicates the investment was unprofitable.
No, basic ROI does not factor in time. A 50% ROI over 1 year is much better than 50% over 10 years. For time-adjusted returns, use annualized ROI or CAGR. Our calculator gives you the total ROI; divide by years for a rough annualized figure.