worldofcalcsROI Calculator
Profit
₹50,000
Total ROI
50.00%
Annual return
14.47%
What is ROI?
Return on investment (ROI) measures how much you gained or lost compared with what you put in. It's simple, but it ignores time: a 50% return over 1 year is far better than 50% over 10 years. This calculator also shows the annual return, so you can compare investments held for different lengths of time.
ROI formulas
ROI = (final value − amount invested) ÷ amount invested × 100 · Annual ROI = (final ÷ invested)^(1 ÷ years) − 1
The annual ROI is the compound yearly rate that turns the amount invested into the final value over the number of years (the same as CAGR). Leave years blank to see only the total ROI.
Comparing returns fairly
- Always compare annual returns, not total ROI, when investments last different lengths of time.
- Include all costs in the amount invested, such as brokerage, stamp duty, fees and taxes, and all income in the final value, such as rent or dividends.
- For investments with several deposits or withdrawals, such as a SIP, use XIRR; the SIP calculator handles regular investing.
- A return lower than inflation (about 4–6% a year in India) means your money lost buying power.
- Higher returns usually come with higher risk. Compare ROI with how much you could lose.
Worked example
- ₹1,00,000 invested grows to ₹1,50,000
- Profit: ₹50,000, so ROI = 50%
- If that took 3 years, the annual ROI is 14.47%
- If it took 1 year, the annual ROI is the full 50%
- Doubling your money is a 100% ROI: 14.87% a year over 5 years, but only 7.18% a year over 10
Total ROI as an annual return
The yearly return behind a total ROI, depending on how many years it took.
| Total ROI | 1 year | 3 years | 5 years | 10 years |
|---|---|---|---|---|
| 25% | 25.00% | 7.72% | 4.56% | 2.26% |
| 50% | 50.00% | 14.47% | 8.45% | 4.14% |
| 100% | 100.00% | 25.99% | 14.87% | 7.18% |
| 200% | 200.00% | 44.22% | 24.57% | 11.61% |
The same total return is worth much less when it takes longer to earn.