ROI Calculator
Calculate Return on Investment (ROI) — measure how profitable an investment is relative to its cost.
ROI
How to use the ROI Calculator
- Enter the amount invested.
- Enter the amount returned (final value including profit).
- Click Calculate to see profit and ROI %.
- To compare investments of different lengths, convert ROI to an annual rate.
Formula used
Worked example
₹1,00,000 invested, ₹1,25,000 returned
Profit = ₹25,000
ROI = 25,000 ÷ 1,00,000 × 100 = 25%
If this took 3 years, annualised return ≈ 7.7% per year
Why annualised ROI matters
A 25% ROI sounds great, but over 3 years it equals about 7.7% a year, which is similar to a bank FD. Annualised ROI = (final ÷ initial)1/years − 1. Also include all costs — brokerage, taxes, maintenance, interest on borrowed money — or the ROI will look better than reality. For marketing, ROI = (revenue from campaign − campaign cost) ÷ campaign cost.
Tips for accurate results
- Compare investments using the same time period.
- Use post-tax returns for a fair comparison.
- A negative ROI means a loss.
Frequently Asked Questions
It depends on risk; beating inflation and safe returns like FDs (about 6–7%) after tax is a common benchmark.
No. ROI compares profit with the amount invested; margin compares profit with sales revenue.
Annual rent minus expenses, divided by total property cost, times 100.
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Content reviewed by Vinod, Easy Smart Calculator · Last updated October 2026