ROI Calculator
Calculate your return on investment (ROI) percentage to measure investment performance and compare different investments.
What is ROI?
Return on Investment (ROI) is a performance measure that evaluates the efficiency of an investment. It's expressed as a percentage and shows how much profit you make relative to your investment amount. ROI = (Gain / Investment) × 100. For example, if you invest ₹1,00,000 and make ₹25,000 profit, your ROI is 25%.
Formula: ROI = ((Final Value - Initial Investment) / Initial Investment) × 100
Why ROI Matters
- Compare Investments: Compare different investments fairly using percentage returns
- Measure Performance: Track how well your portfolio is performing
- Decision Making: Decide whether to continue or exit an investment
- Standardized Metric: Different investments can be compared on same basis
ROI Examples
- Stock Investment: Buy ₹50,000, sell for ₹75,000 → ROI = 50%
- Real Estate: Buy property for ₹50 lakhs, rent earns ₹5 lakhs/year → Annual ROI = 10%
- Mutual Fund: Invest ₹2 lakhs, grow to ₹3 lakhs in 3 years → ROI = 50%
Limitations of ROI
- Doesn't account for time period (50% in 1 year vs 5 years is very different)
- Doesn't account for risk
- Doesn't account for reinvestment of returns
- For longer investments, CAGR (Compound Annual Growth Rate) is better
Calculate ROI
Results
Your ROI Summary: On an initial investment of ₹1,00,000 that grew to ₹1,50,000, your ROI is 50%, meaning you earned 50% return on your investment amount.
How to Calculate ROI
Step-by-step guide
Understand ROI Formula
ROI = ((Final Value - Initial Investment) / Initial Investment) × 100
Note Your Amounts
Initial Investment: ₹1,00,000, Final Value: ₹1,50,000
Calculate Gain
Gain = Final Value - Initial = 1,50,000 - 1,00,000 = ₹50,000
Divide by Initial
50,000 / 1,00,000 = 0.5
Multiply by 100
0.5 × 100 = 50% ROI
Interpret Results
50% ROI means you doubled your investment growth