Investments
ROI Calculator
Return on Investment — the simplest profitability measure. Enter initial investment, final value, holding period. Get total ROI %, annualised CAGR, profit, and benchmark against standard Indian investment options.
Inputs
Returns
Benchmark
- • FD/RD: 6.5–7% annualised (taxable)
- • PPF: 7.1% tax-free
- • Equity Index (Nifty): 11–13% historical CAGR
- • Mid/small cap MF: 13–17% historical CAGR (volatile)
- • Real estate: 4–8% appreciation + 2–4% rental yield
If your annualised ROI (14.5%) is below 6%, you're losing real wealth (post-inflation).
FAQs
What is Return on Investment (ROI)?
ROI = (Final Value − Initial Investment) ÷ Initial Investment × 100. Tells you the total percentage return over the holding period — does not consider time.
Absolute ROI vs Annualised ROI?
Absolute ROI is the total return over the holding period. Annualised (CAGR) divides this across years to give a per-year figure. ₹100K → ₹150K over 3 years: 50% absolute, ~14.5% annualised.
When should I use ROI vs XIRR?
ROI works for a single buy and single sell. XIRR is for multiple buys at different dates (like SIPs). ROI cannot handle additional investments mid-way; XIRR can.
What is a "good" ROI?
Beat inflation (5–6%) at minimum. Beat FD post-tax (~5%) to justify risk. Long-term equity benchmark: 11–13% CAGR. Anything below 6% annualised is losing real wealth in India.