ROI Calculator
Compute simple ROI and annualized (CAGR) return. Enter your initial investment and final value or net profit.
ROI (Return on Investment) Calculator – Simple Explanation
How It Works Calculates the profit or loss earned on an investment relative to its cost, expressed as a percentage. Helps compare different investments.
Key Terms
Initial Investment: Amount of money invested (e.g., ₹50,000).
Final Value: The investment's current or selling value, such as 70,000. Final Value minus Initial Investment (e.g., 20,000) is the net profit. ROI (%): Measures efficiency of the investment.
Formula
ROI (percent) = (Final Value of Initial Investment) x 100 ROI (percent) = (Final Value of Initial Investment) x 100 Example
Initial Investment: ₹1,00,000
Final Value (after 2 years): ₹1,30,000
ROI Calculation:ROI=(1,30,000−1,00,0001,00,000)×100=30%ROI=(1,00,0001,30,000−1,00,000)×100=30%→ You earned a 30% return on your investment.
When Should I Use It? ✔ Comparing stocks, real estate, or business projects.
✔ Measuring marketing campaign success.
✔ Evaluating long-term vs. short-term investments.
Limitations
✖ Ignores time (a 30% ROI in 1 year is better than in 5 years).
Does not take risk into account (a higher ROI may indicate a higher risk).
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