What is ROI Calculator?
Calculate return on investment (ROI), annualized ROI and payback period for any business investment or project Simply enter your values, and the calculator instantly computes accurate results using standard financial formulas. All calculations are performed entirely in your browser — nothing is stored or transmitted.
Formula Used
ROI = (Gain from Investment − Cost) / Cost × 100 | For multi-year investments, annualize by raising (1+ROI) to the power of (1/years) and subtracting 1
How to Use This Calculator
- Enter total investment amount (cost)
- Enter net profit or final value of investment
- Enter investment duration in years
- Click Calculate to see ROI and annualized ROI
- Compare ROI across different investment options
Worked Example
Investment: ₹10,00,000 | Final Value: ₹16,00,000 | Period: 4 years → ROI: 60% | Annualized ROI: 12.5% CAGR
Why Use This Tool?
- Compare ROI across different investments
- See annualized return for multi-year investments
- Calculate payback period for business investments
- Make data-driven investment decisions
Frequently Asked Questions
What is ROI?
ROI (Return on Investment) measures the profitability of an investment. ROI = (Net Profit / Cost) × 100. For example, ₹1 lakh invested that grows to ₹1.5 lakh gives ROI of 50%.
What is a good ROI?
A good ROI depends on the investment type and risk. Equity markets: 12-15% annualized. Real estate: 8-12%. Fixed income: 6-8%. Business investments should ideally give 20%+ to justify the risk.
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