Calculate ROI and annualised return in seconds
The ROI calculator measures how well an investment did. Enter the amount you invested, what you got back (or the gain), and how long the money was invested, and it shows the return on investment (ROI), the net profit, the annualised ROI — also called CAGR — and the money multiple.
Total ROI alone can mislead: a 50% return over ten years is far weaker than 30% over two. Tick “Compare with a second investment” to put two options side by side — shares and a fixed deposit, a rental flat and a mutual fund, two marketing campaigns — and the calculator picks the winner on annualised return, so different time periods are compared fairly.
How to use the ROI Calculator
- Choose your currency and type the amount invested.
- Choose whether you know the amount returned (final value) or the gain or loss, and enter it.
- Enter the period in years and months, or switch to “Start & end dates” for the exact dates.
- Read the total ROI, net profit, annualised ROI and multiple.
- To compare, tick “Compare with a second investment”, rename the cards if you like, and fill in investment B.
ROI Calculator features
Total and annualised ROI
See the overall percentage gain and the equivalent yearly compound rate for the same investment.
Final value or gain
Enter whichever number you have; losses are handled too.
Exact date maths
With start and end dates, the period is measured in exact fractional years, leap years included.
Side-by-side comparison
Two named investments with the better figure highlighted and a clear verdict.
Short-period warning
A note appears when annualising less than a year of data could exaggerate the result.
ROI and annualised ROI formulas
ROI = (final value − amount invested) ÷ amount invested × 100. Net profit = final value − amount invested.
Annualised ROI (CAGR) = (final value ÷ amount invested)1 ÷ years − 1. It is the steady yearly compound rate that would turn your starting amount into the final value over the same period.
Worked example: you invest ₹10,000 and it grows to ₹15,000 in 3 years. ROI = 5,000 ÷ 10,000 = 50%. Annualised ROI = 1.51/3 − 1 = 14.47% a year. A second investment that turns ₹10,000 into ₹13,000 in 2 years has a lower total ROI (30%) but a similar 14.02% annualised — and if you could reinvest for the third year at that rate, the two would end up almost level.
Annualised ROI is not the same as dividing total ROI by the number of years. 50% ÷ 3 = 16.7% overstates the yearly rate because it ignores compounding.
What ROI does not tell you
- Regular contributions: ROI and CAGR assume one lump sum at the start. For monthly investments such as a SIP, money invested later had less time to grow, so use the SIP calculator or an XIRR calculation instead.
- Inflation: a 6% annual return with 5% inflation is only about 1% of real growth. Check purchasing power with the inflation calculator.
- Costs and taxes: include brokerage, fees, stamp duty and tax in the amounts for a true net figure.
- Risk: two investments with the same ROI can carry very different risks of loss.
- Income received along the way: add dividends, interest or rent you received to the final value.
Where ROI is used
Investors use ROI for shares, mutual funds, gold and property. Businesses use it to judge marketing campaigns (revenue gained versus spend — the marketing ROI calculator adds margin, attribution, ROAS and CAC), new equipment, software and hiring. For projects with ongoing costs and revenues, pair ROI with the break-even calculator to see how long it takes to recover the money. To project a future value from an expected annual rate, use the CAGR calculator. These figures are estimates for comparison and are not investment advice.
ROI Calculator FAQ
How do I calculate ROI?
Subtract the amount invested from the final value, divide by the amount invested and multiply by 100. If you invest $2,000 and get back $2,600, ROI = 600 ÷ 2,000 × 100 = 30%.
What is annualised ROI?
It is the compound yearly growth rate that gives the same result over the period, calculated as (final ÷ invested)^(1 ÷ years) − 1. It lets you compare investments held for different lengths of time.
Is ROI the same as CAGR?
No. ROI is the total percentage gain over the whole period. CAGR, or annualised ROI, spreads that gain into an equivalent yearly rate. A 100% ROI over 5 years is a CAGR of about 14.87%.
What is a good ROI?
It depends on the risk, the time period and the alternatives. Compare an investment’s annualised ROI with a low-risk option such as a fixed deposit or government bond, and with inflation, rather than judging the total ROI alone.
Can ROI be negative?
Yes. If the final value is below the amount invested, ROI is negative and shows the percentage lost. Losing everything is −100%.
Why does the calculator warn about periods under a year?
Annualising a short period assumes the same pace continues for twelve months. A 5% gain in one month annualises to almost 80%, which is rarely realistic.