ROI Calculator
Calculate return on investment for campaigns and business decisions.
Return on Investment (ROI) measures the profitability of an investment relative to its cost. It is the most fundamental metric in business and investing: should I invest in this marketing campaign, this equipment, this rental property, or this stock? ROI expresses gain or loss as a percentage of the original investment, allowing direct comparison between vastly different opportunities. This calculator computes simple ROI, annualised ROI, and payback period.
📋 How to Use This Calculator
Enter your initial investment amount and the final return (or net profit). For annualised ROI, also enter the investment duration in years. The calculator shows simple ROI percentage, annualised ROI (CAGR), net profit, and payback period. Use annualised ROI to compare investments of different durations — a 50% return in 5 years (8.45% annually) is worse than a 30% return in 2 years (14.0% annually).
💡 Key Facts & Information
Simple ROI = (Net Profit / Cost of Investment) × 100. Annualised ROI (CAGR) = (Final Value / Initial Value)^(1/years) − 1. Indian investment benchmarks: Sensex average annual return ~12–15% (long-term). Fixed deposits ~6.5–7.5%. Real estate varies widely by city — Mumbai averaged ~6% annually over 10 years; tier-2 cities higher. Gold ~8–10% long-term in INR. Mutual fund equity large-cap historical ~11–13% CAGR. ROI limitations: does not account for risk, liquidity, or time value of money. Use IRR (Internal Rate of Return) for investments with multiple cash flows. Adjusted for 6% inflation, a 12% nominal return has a real ROI of approximately 5.7%.