ROI Calculator
Calculate your Return on Investment (ROI) percentage and analyze investment performance. Make informed decisions with accurate ROI calculations.
Calculate Return on Investment
Enter your investment details to calculate ROI percentage and returns
ROI Analysis
Enter investment details
to see ROI analysis
Investment Performance Benchmarks
| Investment Type | Average Annual ROI | Good ROI | Excellent ROI | Risk Level |
|---|---|---|---|---|
| Stock Market (Equity) | 12-15% | 15-18% | 20%+ | High |
| Real Estate | 8-12% | 12-15% | 18%+ | Medium |
| Mutual Funds | 10-14% | 14-16% | 18%+ | Medium |
| Fixed Deposits | 6-8% | 7-9% | 9%+ | Low |
| Gold | 8-10% | 10-12% | 15%+ | Medium |
| Business Investment | 15-25% | 25-35% | 50%+ | Very High |
* Returns are historical averages and not guarantees of future performance. Actual returns may vary.
Understanding ROI Calculation
Basic ROI Formula
ROI = (Net Profit / Total Investment) × 100%
Where:
- Net Profit = Final Value - Total Investment
- Total Investment = Initial Investment + Additional Investments + Expenses
- Final Value = Selling price or current market value
Annualized ROI = [(1 + Total ROI)^(1/Years) - 1] × 100%
Example Calculation
Scenario: ₹1,00,000 invested for 5 years, sold for ₹1,80,000
Key ROI Metrics to Consider
Improving Your Investment ROI
Research Thoroughly
Conduct proper due diligence before investing. Understand the business model, market potential, and risks involved.
Diversify Portfolio
Spread investments across different asset classes to reduce risk and improve overall portfolio returns.
Long-term Focus
Think long-term rather than short-term gains. Compounding works best over extended periods.
Monitor & Rebalance
Regularly review your investments and rebalance your portfolio to maintain optimal asset allocation.
Important: Risk Management
Higher potential returns usually come with higher risks. Always assess your risk tolerance and invest only what you can afford to lose. Consider consulting with a financial advisor for personalized investment advice.
Frequently Asked Questions
What is a good ROI percentage?
A good ROI depends on the investment type and risk level. Generally, 8-12% annual ROI is good for moderate-risk investments, while 15%+ is excellent. However, always compare with relevant benchmarks and consider inflation (typically 5-6% in India).
What's the difference between total ROI and annualized ROI?
Total ROI shows your overall return percentage for the entire investment period. Annualized ROI calculates the average yearly return, making it easier to compare investments with different timeframes. Annualized ROI is more useful for comparison purposes.
Should I include additional investments in ROI calculation?
Yes, for accurate ROI calculation, include all money invested - initial investment plus any additional contributions. This gives you the true picture of your investment performance and helps in proper decision-making.
How does investment period affect ROI?
Longer investment periods generally lead to better returns due to compounding. However, they also involve more uncertainty. Short-term investments might show higher volatility but can offer quick returns if timed correctly.
What is considered a bad ROI?
Any ROI below inflation rate (currently 5-6% in India) is essentially a negative real return. ROI below fixed deposit rates (6-7%) might indicate poor performance unless the investment offers other benefits like liquidity or tax advantages.