ROI Calculator – Calculate Return on Investment

Return on Investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment. It measures the amount of return on an investment, relative to the investment’s cost. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment. The result is expressed as a percentage or a ratio.

For Indian investors, ROI is the most common metric used to judge a Mutual Fund SIP or a stock market trade. Unlike our CAGR Calculator, which provides the annualized growth, ROI provides the simple absolute growth of the capital invested.

While both metrics measure returns, they serve different purposes:

• ROI (Simple Return): Tells you exactly how much money you made in total. It does not factor in "time." If you double your money in 2 years or 10 years, your ROI is still 100%.
• CAGR (Time-Adjusted Return): Tells you how fast your money grew on an annual basis. Doubling money in 2 years is roughly 41% CAGR, while doing it in 10 years is only 7.2% CAGR.

For business decisions where overheads are involved, use our Break Even Calculator to complement your ROI findings.

In the business world, ROI is used to evaluate capital expenditures (CapEx) or marketing campaigns. A business might invest ₹5 Lakhs into a new piece of equipment and hope for an ROI of 20% per year to justify the purchase. In the stock market, active traders use it via our Intraday Profit Calculator to check their daily performance after charges.