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Return on Investment

ROI Calculator — Return on Investment

Calculate your Return on Investment (ROI) and annualized return (CAGR) for any investment — from stocks and mutual funds to a business or property purchase.

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📈 Enter Investment Details

📊 Your ROI

Enter values and click Calculate
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Disclaimer: Results provided by this calculator are for educational and estimation purposes only. They do not constitute formal financial, investment, or tax advice. Actual returns, rates, and tax treatment depend on your specific circumstances and prevailing regulations. Consult a certified financial advisor or chartered accountant before making financial decisions.

How ROI and CAGR Are Calculated

ROI measures your total return as a percentage of what you put in — it doesn't account for how long you held the investment. CAGR (Compound Annual Growth Rate) normalizes that return into an annual rate, so you can fairly compare investments held for different lengths of time.

ROI = (Final Value − Initial Investment) / Initial Investment × 100
CAGR = ((Final Value / Initial Investment)1/years − 1) × 100

Worked Example

You invest ₹1,00,000 and it grows to ₹1,50,000 over 3 years. ROI = (1,50,000 − 1,00,000) / 1,00,000 × 100 = 50% total return. But annualized, that's CAGR = ((1,50,000/1,00,000)^(1/3) − 1) × 100 = 14.47% per year — a very different (and more useful) number for comparing against, say, a fixed deposit or index fund.

Frequently Asked Questions

A 50% ROI sounds identical whether it took 1 year or 10 years — but those are wildly different outcomes. CAGR converts any return into an equivalent annual rate, so a 50%-over-3-years investment (14.47% CAGR) can be directly compared to a 50%-over-10-years investment (4.14% CAGR) or to a fixed deposit's stated annual rate.
No — ROI and CAGR are purely return metrics; they say nothing about volatility or the chance of loss. A stock that returned 50% and a government bond that returned 50% show identical ROI here despite very different risk profiles. Always weigh ROI against the investment's risk before comparing options.
Yes — the ROI/CAGR formula is generic and works for any investment where you know the starting amount, ending value, and time held: stocks, mutual funds, a small business, or property. For property specifically, our Real Estate ROI and Rental Property Calculators add rental income and holding costs to the picture.
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