ROI Calculator 2026

An ROI (Return on Investment) calculator measures the profitability of an investment by comparing the gain or loss relative to its cost. It takes the initial investment amount, final value, and time period to calculate the percentage return, net profit, annualized return, and CAGR. This is the most fundamental and widely used metric for evaluating investments, business projects, and marketing campaigns. The best results come from including ALL costs and ALL returns for an accurate picture.

The basic ROI formula is: ROI = (Net Profit ÷ Cost of Investment) × 100, where Net Profit = Final Value − Initial Investment. Example: Buy property for ₹50L, spend ₹5L on renovations, sell for ₹65L → Net Profit = 65 − 50 − 5 = ₹10L → ROI = (10/55) × 100 = 18.2%. The same formula applies to stocks, business ventures, or marketing campaigns — only what counts as 'cost' and 'return' changes.

There's no single 'good' ROI — it depends on the investment type, risk level, time period, and economic conditions. General benchmarks: Fixed Deposits/Savings: 5-9% (low risk); Real Estate: 8-15% (moderate risk); Stock Market: 10-15% long-term (moderate-high risk); Small Business: 15-30%+ (high risk). A 'good' ROI exceeds your cost of capital, beats inflation, and compensates for the risk taken — always compare ROI to alternative investments rather than judging it in isolation.

ROI is a simple percentage return — it doesn't account for time or the timing of cash flows. IRR (Internal Rate of Return) accounts for both time AND the timing of each cash flow. Example: an investment of −₹1,00,000 that returns ₹40,000, ₹50,000, and ₹60,000 over 3 years has a 50% total ROI, but an IRR of about 24.8% once the timing of each cash flow is considered. Use ROI for simple buy-sell investments; use IRR for investments with multiple contributions or withdrawals (SIPs, phased real estate costs, etc.).

ROI has several important limitations: it ignores the time value of money and investment duration (which is why this calculator also reports annualized return and CAGR), it doesn't reflect the riskiness of the investment, it ignores inflation, and it can be manipulated by changing the measurement period. A 100% ROI over 10 years (7.2% annualized) is actually worse than a 50% ROI over 3 years (14.5% annualized). Always use ROI alongside other metrics rather than as your only decision factor.