ROI Calculator

Return on investment as a percentage.

Inputs

This calculator is for general information only and isn't financial advice. Rates, tax rules, and your actual eligibility depend on your specific situation — check with your bank or a qualified advisor before acting on it.

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Formula

ROI = ((Final value − Cost) / Cost) × 100

ROI=Final valueCostCost×100ROI = \dfrac{\text{Final value} - \text{Cost}}{\text{Cost}} \times 100

Cost is what you invested (or paid), and final value is what you received back. ROI expresses the net gain or loss as a percentage of the original cost — a 50% ROI on ₹1 lakh means you ended with ₹1.5 lakh.

Worked example

An investment costing ₹1,00,000 that grows to ₹1,50,000 delivers a 50% ROI — a ₹50,000 net gain. ROI ignores how long you held the investment; the same 50% over one year is very different from 50% over ten years, which is where CAGR helps.

Where this can give the wrong answer

  • Cost must be greater than zero — ROI on a zero-cost basis (e.g. free promotional stock) is undefined and returns an error.
  • If final value is below cost, ROI is negative — a ₹1,00,000 investment worth ₹80,000 shows −20% ROI, which is correct.
  • ROI doesn't net out taxes, transaction fees, or currency conversion — enter final value after costs if you want an after-fee figure.

FAQ

ROI measures return relative to what you invested. Profit margin is (revenue − cost) / revenue on a single transaction. A retailer can have a 20% margin on each sale but a very different ROI on the shop's total capital.