ROI Calculator
Calculate your Return on Investment & Annualized Growth.
₹
₹
Years
Net Profit / Loss
₹ 0
Initial Investment
₹ 0
Final Value
₹ 0
Absolute ROI
0.00%
(Total return)
Annualized ROI (CAGR)
0.00%
(Yearly return)
What is ROI (Return on Investment)?
Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment. It measures the gain or loss generated on an investment relative to the amount of money invested.
In simple terms, it answers: "For every ₹100 I invested, how much did I get back?"
Formulas Used
1. Absolute ROI (Total Return)
Absolute ROI (%) = [(Final Value - Initial Investment) / Initial Investment] × 100
This tells you the total growth percentage but ignores the time factor.
2. Annualized ROI (CAGR)
This is the Compound Annual Growth Rate. It tells you the average yearly growth rate, which is crucial for comparing investments of different durations.
Annualized ROI (%) = [ (Final Value / Initial Investment)^(1/Years) - 1 ] × 100
What is a "Good" ROI?
- 6-8%: Safe investments like FDs, PPF.
- 10-15%: Market-linked investments like Mutual Funds (Long term).
- 15%+: High-growth stocks or risky assets.
Remember, higher ROI usually comes with higher risk.