ROI Calculator
Return on investment tells you how much you gained or lost relative to what you put in. It is the simplest way to compare things as different as a share purchase, a rental property, a piece of equipment or a marketing campaign. This ROI calculator gives the percentage return and net profit after any extra costs, and — if you enter how long you held the investment — the annualised ROI, which makes a quick 20% in six months comparable with a 20% over five years.
How to use the roi calculator
- Enter the amount you invested and the final value or sale proceeds.
- Add any extra costs such as fees, taxes or repairs.
- Enter the holding period to see the annualised return.
- Compare the annualised figure across options.
Formula
ROI = (final value − total cost) ÷ total cost × 100, where total cost = amount invested + extra costs. Annualised ROI = (final value ÷ total cost)1 ÷ years − 1.
Worked examples
₹1 lakh grows to ₹1.5 lakh in 3 years
ROI is 50% and the annualised ROI is 14.47%.
With extra costs
If you also paid ₹10,000 in fees and costs, ROI drops to 36.36%.
A loss
₹1 lakh that ends at ₹80,000 with ₹5,000 of costs is a -23.81% return.
Practice problems
Try these yourself first, then check your answer. The answers come from the calculator above.
- You bought a laptop for ₹60,000, spent ₹5,000 on upgrades and sold it for ₹50,000 after 2 years. What is the ROI?
Show answer
Return on investment (ROI): -23.08% · Net loss: ₹15,000.00 · Annualised ROI (CAGR): -12.29%
Common mistakes to avoid
- Ignoring the time period. A 50% ROI over ten years is very different from 50% in one year.
- Forgetting costs, fees and taxes.
- Comparing ROI across investments with different risks.
- Treating past ROI as a forecast.
- Using ROI when regular contributions are involved.
Frequently asked questions
How do you calculate ROI?
Subtract total cost from the final value, divide by total cost and multiply by 100.
What is annualised ROI?
The yearly rate that would produce the same total return over the holding period — it makes different time periods comparable.
What is a good ROI?
It depends on the investment type, risk and period; compare with alternatives and inflation.
Is ROI the same as profit?
No. Profit is an amount; ROI is that amount as a percentage of the cost.
Is this advice?
No. It is a calculation tool.
By Thomas M, Registered Investment Adviser (South Carolina), who launched his own financial advisory firm in 2010. Last reviewed September 26, 2026. Found a mistake? Tell us; see our editorial policy.