ROI Calculator
Calculate your return on investment. Enter the amount invested, the final value and the holding period to see absolute ROI and annualised ROI.
Total Gain
₹80,000
Absolute ROI
80.0%
Annualised ROI
12.47%
Over 5 years (CAGR)
Invested vs Gain
Absolute ROI is the total percentage gain. Annualised ROI (CAGR) spreads that gain evenly across the holding period and is the right measure to compare investments of different durations.
What is Return on Investment (ROI)?
Return on Investment (ROI) measures how much your investment gained relative to what you put in, expressed as a percentage. ROI is the simplest possible return metric - useful for quick comparison but lacking time context. This calculator computes both absolute ROI and annualised ROI. Absolute ROI says "my money grew 60%". Annualised ROI says "my money grew at 12% a year". For comparing different investments over different durations, always use the annualised number.
How to use the ROI Calculator
- Enter the amount invested. The capital you put in.
- Enter the current or final value. What the investment is worth now or at exit.
- Optionally enter the duration. Number of years held - needed to compute annualised ROI.
- Read both ROI numbers. Absolute ROI shows total gain; annualised ROI shows yearly compounding rate.
- Use the right one. For comparing investments, use annualised ROI. For total impact, use absolute.
Formula and method
Absolute ROI is the total percentage change. Annualised ROI is the same as CAGR - the smoothed yearly rate that converts your start value to your end value.
When ROI is the right metric
- Quick gut-check. Has my money grown? By how much?
- Comparing two simple investments. Use annualised ROI for fairness.
- Cross-asset comparison. Compare a property, equity portfolio and FD on the same basis.
- Project ROI. Estimate what you expect from a planned investment before committing.
- Always pair with risk. A 20% ROI from FD is brilliant; from a leveraged trade it is unremarkable.