ROI Calculator — Return on Investment
Calculate return on investment (ROI), net profit, and annual ROI. Works for business investments, marketing campaigns, and stocks.
About this calculator
Return on investment, or ROI, measures the gain or loss on an investment relative to its cost. It is the simplest way to answer whether something was worth it, whether the something is a stock, a rental flat, a marketing campaign or new equipment.
Enter what you put in and what you got back, and the calculator shows the net profit and the total ROI. Pick a time period and it also gives you the annualised ROI, which lets you compare investments held for different lengths of time.
How to use it
- Enter the Initial Investment.
- Enter the Final Value or Return.
- Choose the Time Period, or leave it at one-time for no annualisation.
- Read the net profit, total ROI and the annual ROI.
ROI formula
ROI = (Final value − Initial investment) ÷ Initial investment × 100. Annualised: (Final ÷ Initial)1/years − 1. Include all costs in the initial figure, such as fees, repairs and taxes, otherwise ROI is overstated.
Worked example
₹1,00,000 turned into ₹1,50,000 over 3 years
| Net profit | ₹50,000 |
| Total ROI | 50.0% |
| Annual ROI | 14.5% |
A 50% ROI on a three-year investment is 14.5% a year. Compare that figure, not 50%, with a one-year alternative.
Tips and common mistakes
- Include every cost in the investment figure, including fees and taxes.
- ROI ignores risk. A 20% ROI from a safe asset beats 20% from a speculative one.
- Always annualise when comparing investments of different lengths.
- For business campaigns, count only incremental revenue, not total sales.
- ROI does not show when cash flows occurred. Use IRR or XIRR for staggered cash flows.
Frequently asked questions
What is a good ROI?
It depends on risk and time. Compare with the return on a safe alternative such as a fixed deposit and with inflation.
What is the difference between ROI and CAGR?
ROI is the total return. CAGR spreads it into a yearly rate. This tool gives both when you pick a time period.
Can ROI be negative?
Yes. A negative ROI means a loss.
Is ROI the same as profit margin?
No. ROI divides profit by cost invested. Margin divides profit by revenue.
How do I calculate marketing ROI?
Use incremental revenue from the campaign minus its cost, divided by its cost.
Does ROI include time?
Only if you select a period. Otherwise it is a one-time figure.