ROI Calculator
What you put in, what came back — ROI, annualised ROI and a side-by-side comparison.
Comparison
How this was calculated
Results are estimates for general information and planning, not financial advice. Banks and institutions may calculate differently (rounding, fees, rate changes). Confirm figures with your lender or a qualified adviser before deciding.
About the ROI Calculator
Return on investment compares what came back with what you put in: ROI = (amount returned − amount invested) ÷ amount invested. Turning ₹1,00,000 into ₹1,50,000 is a 50% ROI and a net profit of ₹50,000.
A 50% return over three years is not the same as 50% over one, so the calculator also annualises the return over a holding period — in years and months, or between two dates — with the compound formula (1 + ROI)^(1 ÷ years) − 1. Add several projects, investments or campaigns to compare them side by side: they are ranked by annualised ROI, so a smaller return earned faster can come out ahead.
How to use it
- Enter the amount invested and the amount returned — the final value or sale proceeds plus any income it paid.
- Choose how to give the holding period: as years and months, or as start and end dates.
- Add more rows with Add an investment to compare projects or campaigns; give each a name.
- Read the ROI, net profit, annualised ROI and multiple, and the ranking table. Copy the summary or download a CSV.
Examples
ROI 50% · profit ₹50,000 · annualised 14.47% a year (simple average 16.67%)
ROI 24% · annualised 15.42% a year — the better result per year, despite the lower ROI
912 ÷ 365 = 2.4986 years → 17.62% a year
ROI 30% · annualised 185.61% — only if it could be repeated all year
ROI −20% · annualised −10.56% a year
ROI and annualised ROI
ROI on its own is a holding-period return: it ignores how long the money was tied up. To compare investments held for different lengths of time, convert it to a yearly rate. The compound (geometric) formula used in the CFA Institute curriculum is:
- annualised ROI = (1 + ROI)^(1 ÷ years) − 1
- with dates, years = days ÷ 365
The simple yearly ROI (ROI ÷ years) is shown alongside because it is often quoted, but it ignores compounding and overstates longer investments: 50% over three years is 16.67% a year simple but 14.47% compound. Annualising a period shorter than a year assumes the same return could be repeated, which is rarely true — read short-period figures with care.
ROI for marketing campaigns
For a campaign, use the profit it brought in (revenue minus the cost of the goods sold), not the revenue, as the amount returned — otherwise the ROI counts your product costs as return. Revenue divided by ad spend is ROAS, a different measure: work it out with the ROAS calculator.
When to use CAGR or XIRR instead
With one amount in and one amount out, annualised ROI is the same as the compound annual growth rate — see the CAGR calculator for growth between two values. When money goes in or comes out several times (SIP instalments, top-ups, dividends paid out along the way), use the XIRR calculator, which weighs each cash flow by its date.
Limitations
- Each row is one amount invested and one amount returned. For several cash flows at different dates use XIRR.
- Taxes, inflation and the cost of borrowed money are not deducted — include them in the amounts if they matter.
- Dates use a 365-day year. A return over a very short period is not annualised when compounding it would give more than 1,000,000% a year (50% in one day would be a 67-digit yearly rate); compare the ROI instead.
Privacy
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Frequently asked questions
How do I calculate ROI?
Subtract the amount invested from the amount returned and divide by the amount invested: (₹1,50,000 − ₹1,00,000) ÷ ₹1,00,000 = 0.5, or 50%.
How do I annualise ROI?
Add 1 to the ROI as a decimal, raise it to the power of 1 ÷ the number of years, and subtract 1: (1.5)^(1/3) − 1 = 14.47% a year for 50% over three years.
Is annualised ROI the same as CAGR?
Yes, when there is one amount invested at the start and one amount returned at the end — both are the compound yearly rate that turns the first amount into the second.
What is the difference between ROI and ROAS?
ROI measures profit against cost. ROAS (return on ad spend) divides the revenue a campaign brought in by what was spent on the ads, so it leaves out product and other costs.
Which investment is better: a higher ROI or a higher annualised ROI?
When the holding periods differ, compare the annualised ROI: 24% in 18 months (15.42% a year) beats 50% in three years (14.47% a year).