ROI Calculator
Calculate Return on Investment (ROI) and annualized ROI
Investment Details
Breakdown
Final Value
1,50,000
How ROI (Return on Investment) is Calculated?
ROI measures the profitability of an investment by comparing the gain or loss relative to the initial investment cost. It's expressed as a percentage and helps investors evaluate investment performance.
ROI = [(Final Value - Initial Investment) / Initial Investment] × 100
Annualized ROI = [(Final Value / Initial Investment)^(1/Years) - 1] × 100
Where:
- Final Value = Current or ending value of investment
- Initial Investment = Starting amount invested
- Years = Investment period in years
Example:
Let's say you invested ₹1,00,000 in a mutual fund, and after 3 years, it's worth ₹1,50,000.
Given: Initial Investment = ₹1,00,000, Final Value = ₹1,50,000, Years = 3
Step 1: Calculate Absolute Return
Absolute Return = Final Value - Initial Investment
Absolute Return = ₹1,50,000 - ₹1,00,000 = ₹50,000
Step 2: Calculate ROI
ROI = [(Final Value - Initial Investment) / Initial Investment] × 100
ROI = [(₹1,50,000 - ₹1,00,000) / ₹1,00,000] × 100
ROI = [₹50,000 / ₹1,00,000] × 100
ROI = 0.5 × 100 = 50%
Step 3: Calculate Annualized ROI
Annualized ROI = [(Final Value / Initial Investment)^(1/Years) - 1] × 100
Annualized ROI = [(₹1,50,000 / ₹1,00,000)^(1/3) - 1] × 100
Annualized ROI = [(1.5)^(0.333) - 1] × 100
Annualized ROI = [1.1447 - 1] × 100 = 14.47%
Result: Your investment returned 50% over 3 years, which is equivalent to 14.47% per year (annualized).
What Can You Calculate?
Stock Investments
Calculate returns on stock portfolios and individual stocks
Real Estate
Evaluate property investment returns
Business Investments
Measure profitability of business ventures
Any Asset
Calculate returns on any investment worldwide
Why Use Our ROI Calculator?
Absolute and annualized ROI
Works for any investment type
Visual breakdown charts
100% free, no registration
Mobile-friendly design
Global currency support
ROI Calculator FAQs
❓What is ROI?
ROI (Return on Investment) is a financial metric that measures the profitability of an investment, expressed as a percentage of the initial investment.
❓What's the difference between ROI and annualized ROI?
ROI shows total return over the investment period, while annualized ROI normalizes returns to a yearly rate, making it easier to compare investments of different durations.
❓Can I use this for negative returns?
Yes, the calculator handles both positive and negative returns, showing losses in red for easy identification.
❓Is this calculator free?
Yes, our ROI calculator is completely free to use with no signup required.