What is the ROI?
ROI measures how much you gained relative to what you put in. It is the most universal financial metric — used for shares, property, business projects and marketing spend alike.
Plain ROI ignores time, which is its main weakness. A 50% return over three years and over ten years are wildly different, which is why the annualised figure matters more.
Formula & worked example
Annualised = ((Returned / Invested)1/n − 1) × 100
Worked example: ₹5,00,000 becoming ₹7,50,000 over three years is a 50% ROI, but only 14.47% annualised. Against a 7% alternative (which would give ₹6.13 lakh), you outperformed by about ₹1.37 lakh.
How to use this roi calculator
- Enter what you invested in total, including all costs.
- Enter what you got back, net of exit costs and taxes if you want the real figure.
- Set the holding period in years.
- Use the alternative return to compare against an FD, index fund or your loan rate.
Smart tips
- Always compare annualised returns, never absolute ones, across different time periods.
- Include every cost — brokerage, stamp duty, maintenance and tax — or ROI will be flattering and wrong.
- Compare against your loan rate. If you carry 9% debt, an investment returning 7% is a net loss.
- ROI ignores risk. A 15% return with high volatility is not obviously better than 10% that is guaranteed.
Frequently asked questions
How do I calculate ROI?
Subtract the amount invested from the amount returned, divide by the amount invested, and multiply by 100.
What is a good ROI?
It depends on risk and horizon. Equity over 10+ years averages 11–13% annualised in India; debt gives 6–8%. Judge against a comparable alternative.
What is the difference between ROI and annualised return?
ROI is total gain regardless of time. Annualised return converts it to a per-year rate, making different periods comparable.
Should ROI include taxes?
For a true picture, yes. Post-tax ROI is what you actually keep and is the only fair basis for comparison.
Want the theory behind the numbers? Read our returns guides on the Money Blog.