ROI Calculator
Calculate Return on Investment (ROI), annualized ROI and break-even period for any investment.
Return on Investment
50%
You gained $5,000
Annualized ROI
8.45%
Per year average return
Break-Even Period
5 years
Time to recover investment
Last updated: March 2026
How this calculator is verified
Checked by Rahim Virani on
- ROI = (gain - cost) / cost verified on a known investment
- Annualised return uses the correct exponent for periods under one year
- Net ROI accounts for fees and tax where provided
The full verification method is on our how we verify page. Found an error? Tell us and we will re-check it.
When to Use This Calculator
Return on investment is the number every business owner and investor quotes, and this calculator works it out from just the investment amount and the final value. A shopkeeper comparing a ₹2 lakh machine against a ₹3 lakh machine can see which one returns its cost faster; a freelancer can measure the ROI on a paid course or new laptop by estimating the extra income it generates; and small investors can compare mutual fund or FD returns on the same basis. The result comes as a percentage and also as a multiple, so you can see whether the investment doubled. Because ROI ignores time, pair it with the CAGR or the compound interest calculator when comparing investments of different durations. When comparing offers, always enter the same basis for both options — a machine that pays back in two years beats one that pays back in four even if the absolute profit is similar. Small businesses also compare marketing spend this way — the ROI of an ad campaign is simply the extra profit it brought in divided by what the ads cost. Investors comparing a fixed deposit with a mutual fund over the same period can enter the maturity values side by side and see which delivered a higher percentage return.
How to Use This Calculator
- Step 1: Enter the initial investment amount you put in.
- Step 2: Enter the final value of that investment today.
- Step 3: Enter the number of years the money was held.
- Step 4: Read the ROI percentage, the gain, the annualized ROI and the break-even period shown by the calculator.
Worked Example
You invest ₹1,00,000 and it is worth ₹1,30,000 after 2 years. The gain is ₹30,000 and the ROI is 30%. The annualized ROI — what that result means per year — is about 14.02%, and the break-even period reads 2 years, because this investment only turns profitable when sold at the end of the horizon. The annualized figure is the one to use when comparing with a 5-year investment or a fixed deposit, since plain ROI ignores how long the money was locked in.
Tips and Common Mistakes
- •Tip 1: Use annualized ROI to compare investments of different durations — 30% over 2 years is only about 14% a year.
- •Tip 2: Enter the final value after costs — brokerage, exit loads and capital gains tax — to get a net ROI.
- •Tip 3: For SIP-style investing with many instalments, simple ROI understates the return; prefer the annualized figure shown here as a first cut.
- ✗Mistake 1: Entering the holding period in months or leaving it at 1 year for a multi-year investment — the annualized figure gets inflated.
- ✗Mistake 2: Comparing a 1-year and a 5-year investment by plain ROI without annualizing first.
Frequently Asked Questions
What is the ROI formula?
ROI = (final value − initial investment) ÷ initial investment × 100. If you invest ₹1,00,000 and it is worth ₹1,30,000, the gain is ₹30,000 and the ROI is 30%.
Why should I look at annualized ROI instead of plain ROI?
Plain ROI ignores how long your money was invested, so it cannot compare a 1-year and a 5-year investment. Annualized ROI converts the total return to a per-year figure — 30% over 2 years is about 14.02% a year — which is the number to compare with FDs and SIPs.
How is ROI different from XIRR for SIP investments?
ROI assumes one lump-sum investment and one final value. SIPs involve many monthly cash flows, so the correct measure is XIRR, which treats each instalment's timing separately — simple ROI on a SIP understates the true return.
What return should I expect from investments in India?
Rough planning figures: fixed deposits 6–7%, PPF around 7%, and diversified equity mutual funds 10–12% over long horizons, though none are guaranteed. Use your real numbers after costs and taxes to compute the actual ROI of any investment.
Should I include taxes when calculating ROI?
Yes — for a net ROI, enter the final value after brokerage, exit loads and tax. For equity funds held over a year, long-term gains above ₹1.25 lakh are taxed at 12.5%; FD interest is taxed at your slab rate, so after-tax returns can be significantly lower than the headline rate.
Compare these tools
- Future Value Calculator — Find what your money grows into with compound interest at any frequency
- Gratuity Calculator (India) — Calculate gratuity under the Payment of Gratuity Act, 1972 with the 15/26 formula and the ₹20 lakh tax-exempt cap for Indian employees
- GST Calculator (India) — Add or remove GST from any amount, with CGST + SGST split for intra-state and IGST for inter-state supplies
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