RETURN ON INVESTMENT
CALCULATOR
Return on Investment (ROI) is a key metric used to evaluate the profitability of an investment. It helps investors understand how much return they are getting compared to what they put in. A higher ROI means the investment is performing well. It’s widely used in business, finance, and marketing to compare different opportunities. ROI simplifies complex decisions by turning results into a clear percentage. Knowing your ROI can help you make smarter, data-driven financial choices.
How to use ROI Calculator?
Enter Initial Investment:
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Use the slider or input box to enter the amount you initially invested.
Enter Final Value:
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Enter the value your investment grew to over time.
Select Time Period (Years):
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Enter how many years the investment was held.
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You can use half-year intervals like 2.5 years.
View Results Instantly:
The calculator will automatically show:
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Total Gain: Your profit in currency.
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ROI %: Overall return on your investment.
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Annual ROI %: Yearly average return.
Year-by-Year Breakdown:​
Scroll down to the table to see:
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Yearly investment value
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Gain each year
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Percentage return
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Total value growth
What is ROI (Return on Investment)?
Return on Investment (ROI) is a key financial metric used to measure the performance of an investment. It shows how much profit or loss you made in relation to the money you initially put in. ROI is commonly used by individuals and businesses to evaluate the efficiency of various investment options.
Why ROI matters:
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It helps you understand whether an investment was worth it.
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You can compare ROI across different types of investments like mutual funds, stocks, gold, real estate, or even your own business.
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It simplifies decision-making by giving you a clear number that represents your gain.
Example:
If you invested ₹1,00,000 in a stock and sold it later for ₹1,50,000, your ROI tells you that you gained ₹50,000 over what you originally invested — a 50% return.
Key takeaways:
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Higher ROI = better profitability.
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Negative ROI = investment loss.
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Useful for both short-term and long-term financial planning.
​Why is ROI important for investors?
ROI is one of the most widely used tools in investment planning because it simplifies performance analysis. It helps investors decide where to put their money for the best possible returns.
Here’s why ROI is essential:
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Easy Comparison: Helps you compare how different investments performed — whether it’s mutual funds vs real estate, or stocks vs gold.
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Quick Evaluation: Offers a fast way to gauge if an investment is doing well without diving into complex financial details.
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Helps Set Goals: Lets you set return targets and evaluate if your current investments are on track.
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Decision-Making Tool: Helps you decide whether to stay invested, switch, or exit.
Real-life example:
If one investment gave you 20% ROI and another gave 7%, you clearly know which one worked better over that time period.
How can I calculate ROI without using complex formulas?
Calculating ROI can sound intimidating, but it doesn't have to be. In fact, modern tools like online calculators can do all the work for you in seconds—you just need to know what numbers to plug in.
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Here’s what you typically need:
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Initial Investment: The total amount you originally invested or spent.
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Final Value: What your investment is worth now or at the end of a period.
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Time Period (Optional but helpful): How long you held that investment.
The ROI calculator takes these inputs and shows you:
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Total profit or gain: The amount you've earned (or lost).
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Percentage ROI: So you can compare different investments equally.
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Annualized ROI: This shows the average yearly return, which is helpful when your investments span multiple years.
Why this matters:
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No manual math: Avoid spreadsheets, financial jargon, or making errors.
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Quick comparisons: You can test different values to simulate future investment results.
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Better planning: Helps forecast your future goals and expected returns.
Example:
If you invested ₹2,00,000 and now it’s worth ₹3,00,000, the calculator will tell you not just that you earned ₹1,00,000—but also how efficient that gain was over the given time period.
Why is ROI important before making any investment decision?
ROI acts like a compass that points toward financial clarity. Before you commit your money anywhere—be it a mutual fund, startup, or even higher education—ROI helps you visualize whether that decision is going to move you forward financially.
Here’s why it should be a part of your decision-making process:
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Clarity over confusion: It simplifies complex numbers and forecasts into an easy-to-understand percentage.
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Avoids emotional investing: People often invest based on hype or social pressure. ROI helps you focus on actual results.
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Benchmark performance: You can set ROI goals for yourself and monitor if you're on track.
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Efficient use of money: It ensures you're not just earning — but earning enough for the risk and time involved.
Real-world example:
You’re deciding between investing ₹1,00,000 in a fixed deposit or a mutual fund. The FD gives stable but low returns. The mutual fund might be volatile but has the potential for higher returns. By estimating the ROI of both, you can decide which one suits your goals and risk tolerance.
What is a ‘good’ ROI? What should I aim for?
The idea of a “good” ROI isn’t one-size-fits-all. It depends on your risk appetite, the type of investment, and how long you're planning to hold it. But here’s a rough guide:
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Low-risk options (like FDs or PPF): ROI of 5–8% per year is considered decent.
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Mutual funds: You can aim for 10–15% if investing long term and in equity-based schemes.
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Stocks or real estate: 15–25% ROI is great, though riskier.
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Startups or business ventures: 30%+ is often the goal, but it comes with higher uncertainty.
Things to keep in mind:
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Higher ROI usually means higher risk. If someone promises guaranteed high ROI, it may be a red flag.
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Consistency beats spikes. A steady 12% ROI over 10 years is often better than one year of 25% and three years of losses.
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Compare with inflation. If inflation is 6%, your investment should beat that to grow in real value.
How can I improve my ROI over time?
Improving ROI isn’t about chasing quick returns or taking unnecessary risks. It’s about being smart, patient, and strategic with your money.
Tips to boost your ROI:
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Start early: The power of compounding means even small gains add up over time.
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Diversify: Don’t put all your money into one investment. Spread it across mutual funds, stocks, gold, or real estate.
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Review regularly: Monitor your investments to see what’s performing and what’s not. Shift where necessary.
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Minimize costs: High fees or commissions can reduce your actual returns. Choose low-cost options where possible.
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Reinvest your gains: Instead of withdrawing profits, reinvest them to grow your capital faster.
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Educate yourself: Stay updated with market trends, taxation changes, and financial strategies.
Example:
Instead of putting all your savings into a fixed deposit with 6% ROI, consider splitting across a 12% SIP, 10% gold fund, and a 7% debt instrument. This can help balance risk while improving your overall portfolio ROI.
Stay informed! Use our ROI calculator to plan smarter investments, track your growth, and make confident financial decisions!