ROI Calculator: Return on Investment in Percent
Enter what you invested and what you got back. The calculator shows your ROI, net profit and, if you add the time taken, the annualised return so you can compare projects of different lengths.
Estimates only. Check important results before you rely on them.
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From related categoriesHow to use this calculator
- Enter the total amount you spent.
- Enter the total amount you got back.
- Optionally enter the time taken in months.
- Read the ROI and the net profit.
The formula
Worked example
Investing ₹1,00,000 and getting back ₹1,35,000 is a profit of ₹35,000, so the ROI is 35%. Over 8 months, the annualised ROI is about 56.9% a year.
Understanding your result
ROI ignores time, so a 35% return in 8 months is better than 35% in 3 years. The annualised figure puts both on a yearly basis. Include every cost in the investment amount.
When to use it
- Compare stock batches, ad campaigns and projects.
- Check if an expense paid off.
- Compare returns over different periods.
In-depth guide
The same return over different periods
A 20% gain is much better in 6 months than in 2 years. The annualised ROI shows the equivalent yearly rate.
| Period | ROI | Annualised ROI |
|---|---|---|
| 3 months | 20% | 107.4% |
| 6 months | 20% | 44.0% |
| 12 months | 20% | 20.0% |
| 24 months | 20% | 9.5% |
| 36 months | 20% | 6.3% |
What to include in the investment
- Purchase price and any setup cost.
- Fees, brokerage, repairs and running costs.
- Taxes and charges when you sell.
- The value of your own time if it is a business.
ROI compared with other measures
ROI is a quick comparison for a single investment with a single return. It ignores the pattern of cash flows over time. If you invest regularly, use the SIP or Investment Return calculators. If you are choosing between ads, compare ROAS and profit as well.
Common mistakes
- Using revenue instead of profit as the return.
- Leaving out costs.
- Comparing a short-term and a long-term ROI without annualising.
- Ignoring risk. A higher ROI usually comes with higher risk.
Assumptions and limits
Assumes a single investment and a single return. For regular investments use the SIP or Investment Return calculators.
Frequently asked questions
How do I calculate ROI?
Subtract the investment from the return, divide by the investment and multiply by 100.
What is a good ROI?
It depends on the risk and the time period. Compare it with other options available to you.
What is annualised ROI?
The yearly rate that would give the same return over the period.
Can ROI be negative?
Yes, when you get back less than you invested.
Does ROI include time?
Not by itself. Use the months field for the annualised figure.