A Return on Investment (ROI) calculator measures the efficiency of an investment by comparing the profit or loss relative to the initial investment cost.
About this calculator
A Return on Investment (ROI) calculator measures the efficiency of an investment by comparing the profit or loss relative to the initial investment cost. ROI is expressed as a percentage and is one of the most commonly used metrics in business and personal finance.
ROI lets you compare different investments on a level playing field, regardless of the original investment size, by expressing returns as a percentage.
Common uses
- Calculate ROI on a stock or mutual fund investment
- Measure the return on a real estate investment
- Compare ROI of different business investments
- Evaluate whether an advertising spend generated adequate returns
Frequently asked questions
What is the ROI formula?
ROI = (Current Value − Initial Investment) / Initial Investment × 100%. For example, if you invested ₹1 lakh and the investment is now worth ₹1.5 lakh, the ROI is (1,50,000 − 1,00,000) / 1,00,000 × 100% = 50%.
What is a good ROI?
It depends on the asset class and time period. A 10–12% annual ROI from equity markets is considered good historically. Real estate typically offers 8–12% in India. Any ROI below inflation (currently 4–6%) means your money is losing real value.