What is an ROI calculator?
An ROI (return on investment) calculator measures how much profit you made relative to what you put in. You enter the amount invested, the amount you got back, and optionally how long you held the investment.
The tool shows net gain in rupees, total ROI as a percentage, and annualized ROI when you provide a tenure. Use it to compare a property sale, business project, or mutual fund exit—not as a substitute for tax-adjusted or risk-adjusted analysis.
When does an ROI calculator help?
Raw profit numbers hide scale. ₹50,000 on a ₹5 lakh bet is very different from the same gain on ₹50 lakh. ROI puts both on the same percentage footing.
- Compare two investments with different ticket sizes.
- Express a one-time gain as an annualized rate over the holding period.
- Sanity-check whether a projected exit meets your target return before committing capital.
How does this ROI calculator work?
Total ROI is (amount returned − amount invested) ÷ amount invested × 100. When you enter a tenure, annualized ROI uses the CAGR formula: ((returned ÷ invested)^(1/years) − 1) × 100.
ROI = ((Returned − Invested) / Invested) × 100
Where –
| Returned | Final value or sale proceeds |
|---|---|
| Invested | Original capital deployed |
Annualized ROI = ((Returned / Invested)^(1 / years) − 1) × 100
Worked example
Invest ₹1,00,000 and receive ₹2,00,000 after five years. Net gain is ₹1,00,000 and total ROI is 100%. Annualized ROI is about 14.87%—the steady yearly rate that would double your money in five years.
For mutual fund growth projections with a fixed CAGR, try the <a href="/calculators/mutual-fund-returns-calculator/">mutual fund returns calculator</a> or <a href="/calculators/lumpsum-calculator/">lumpsum calculator</a>.
How to use this ROI calculator
Enter amount invested, amount returned, and investment period in years. Results update as you adjust sliders or type values.
What this calculator does not include
Tax on capital gains, transaction costs, partial withdrawals, and currency effects are not modeled. ROI here is pre-tax and based on two lump-sum figures you supply.
Frequently asked questions
What is the difference between ROI and CAGR?
Total ROI is the overall percentage gain on your original investment. Annualized ROI (CAGR-style) spreads that gain evenly across each year of the holding period—useful when comparing investments held for different durations.
Can ROI be negative?
Yes. If amount returned is less than amount invested, net gain and ROI are negative—you lost money on a percentage basis.
Are these results guaranteed?
No. You supply the returned amount; the calculator does not predict future prices or fund NAVs.