ROI Calculator

Compute simple ROI and annualized (CAGR) return. Enter your initial investment and final value or net profit.

Initial Investment

Final Value

Or: Net Profit (optional)

Holding period (years)

Use Final Value OR Net Profit for flexibility.

Formula: Simple ROI = (Gain / Cost) × 100. CAGR = (Final/Initial)^(1/years) - 1

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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).