What is the ROI formula?

ROI = ((Net Return − Investment Cost) ÷ Investment Cost) × 100. For example, investing ₹50,000 and receiving ₹65,000 back = ((65,000 − 50,000) ÷ 50,000) × 100 = 30% ROI.

A good ROI depends on context. For stock market investments, 10–15% annual ROI is considered strong over the long term. For business initiatives, most companies target ROI above 20–30%. For marketing spend, a 300–500% ROI (meaning ₹3–5 returned per ₹1 spent) is often the target.

What is annualized ROI?

Annualized ROI adjusts the total ROI for the investment's time period so you can compare investments with different durations on a per-year basis. Formula: ((1 + ROI)^(1/years)) − 1.

What is the payback period?

The payback period is the time needed to recover the original investment from returns. It is calculated as: Investment ÷ Annual Return. Shorter payback periods reduce risk.

What are the limitations of ROI?

ROI does not account for the time value of money, risk, or cash flow timing. For complex multi-year investments, NPV (Net Present Value) and IRR (Internal Rate of Return) are more precise measures.

ROI Calculator – Calculate Return on Investment Instantly

Calculate the return on any investment instantly. Enter the cost and the net return to see ROI percentage, net profit, and payback period. Add duration to compare investments on an annualized basis.

Simple ROI Calculator

Return on Investment = (Gain − Cost) ÷ Cost × 100

Amount InvestedAmount Returned

Annualized ROI

CAGR — Compound Annual Growth Rate of your investment

InvestedReturnedYears

Investment Growth Calculator

Project future value with monthly contributions and compound growth

InitialMonthlyRate %/yrYears

Break-Even Calculator

How many units do you need to sell to cover your costs?

Fixed CostsPrice/UnitCost/Unit

ROI Formulas

Simple ROI

(Return − Investment) ÷ Investment × 100

e.g. ($1,500 − $1,000) ÷ $1,000 = 50%

Annualized ROI (CAGR)

(Final ÷ Initial)^(1/years) − 1

e.g. $2,000 from $1,000 in 3yr = 26%

Break-Even Units

Fixed Costs ÷ (Price − Variable Cost)

e.g. $10,000 ÷ ($50 − $30) = 500 units

Future Value

PV(1+r)ⁿ + C × [(1+r)ⁿ − 1] ÷ r

e.g. $10k + $500/mo at 8% for 10yr

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Simple & Annualized

Calculate basic ROI or annualized CAGR to compare investments over different time periods.

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Growth Projections

Project future investment value with monthly contributions and compound interest.

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When to Use an ROI Calculator

Evaluating a business investment

Enter the cost of an initiative and its expected return to see ROI percentage and whether the investment is financially justified.

Measuring marketing campaign returns

Calculate whether ad spend, influencer partnerships, or content investments generated more revenue than they cost.

Comparing two investment options

Run both options through the ROI calculator to compare returns on a percentage basis, adjusting for different time horizons using annualized ROI.

How to Calculate ROI

Enter investment cost

Provide the total amount invested or spent.

Enter net return

Enter the revenue or value generated by the investment.

Add time period (optional)

Enter duration in years to see annualized ROI.

View ROI result

See ROI %, net profit, annualized return, and payback period.

Simple ROI vs. Annualized ROI: When Each Matters

Simple ROI shows the total return on an investment regardless of how long it took. A 100% ROI on a 1-year investment is excellent; a 100% ROI on a 10-year investment is mediocre. Annualized ROI converts the total return into a per-year equivalent so you can compare investments with different time horizons on equal terms. If Investment A returns 60% over 4 years and Investment B returns 30% over 2 years, simple ROI makes A look better — but annualized ROI shows both at approximately 12.5% per year, making them equivalent. Use annualized ROI whenever comparing investments with different durations, or when evaluating whether an investment beats a benchmark like market returns or FD rates.

Measuring ROI on Marketing and Advertising Spend

Marketing ROI is calculated the same way: (Revenue from campaign − Campaign cost) ÷ Campaign cost × 100. A Google Ads campaign that costs ₹10,000 and generates ₹40,000 in revenue has a 300% ROI. However, marketing ROI calculations require careful attribution — not all revenue from a period can be credited to a single campaign. For e-commerce, use only the direct revenue tracked from the campaign (UTM-tagged purchases, coupon redemptions). For brand campaigns, the return may be indirect and delayed. The payback period metric is useful for subscription businesses: if a customer acquisition costs ₹1,500 and the monthly subscription revenue is ₹500, the payback period is 3 months.

Frequently Asked Questions

What is the ROI formula?: ROI = ((Net Return − Investment Cost) ÷ Investment Cost) × 100. For example, investing ₹50,000 and receiving ₹65,000 back = ((65,000 − 50,000) ÷ 50,000) × 100 = 30% ROI.
What is a good ROI?: A good ROI depends on context. For stock market investments, 10–15% annual ROI is considered strong over the long term. For business initiatives, most companies target ROI above 20–30%. For marketing spend, a 300–500% ROI (meaning ₹3–5 returned per ₹1 spent) is often the target.
What is annualized ROI?: Annualized ROI adjusts the total ROI for the investment's time period so you can compare investments with different durations on a per-year basis. Formula: ((1 + ROI)^(1/years)) − 1.
What is the payback period?: The payback period is the time needed to recover the original investment from returns. It is calculated as: Investment ÷ Annual Return. Shorter payback periods reduce risk.
What are the limitations of ROI?: ROI does not account for the time value of money, risk, or cash flow timing. For complex multi-year investments, NPV (Net Present Value) and IRR (Internal Rate of Return) are more precise measures.

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