ROI Calculator
Calculate return on investment, CAGR, net profit/loss and investment multiple instantly
tuneInvestment Details
Total ROI
+80.0%
Profitable Investment
Net Profit
₹80,000
Final − Initial
Initial Investment
₹1,00,000
Amount invested
Annualized ROI (CAGR)
12.47% p.a.
Compounded annual return
Investment Multiple
1.80x
Final / Initial
Investment Period
5 Years
Holding duration
ROI
+80%
Initial Investment
₹1,00,000
Net Gain
₹80,000
functions ROI Formula
ROI % = (Final − Initial) / Initial × 100
CAGR = (Final / Initial)^(1/t) − 1
t = Investment period in years
ROI vs CAGR — What's the Difference?
ROI measures total profit as a percentage of the initial investment over the entire holding period. CAGR (annualized ROI) converts that total return into an equivalent annual growth rate — making it easy to compare investments held for different durations.
A 100% ROI over 5 years = 14.87% CAGR, while the same 100% over 10 years = 7.18% CAGR. Always use CAGR to compare investments with different time horizons.
lightbulb Example Calculation
Scenario: ₹1 lakh invested, grown to ₹1.8 lakh in 5 years
1Net Gain = ₹1,80,000 − ₹1,00,000 = ₹80,000
2ROI = 80,000 / 1,00,000 × 100 = 80%
3CAGR = (1.8)^(1/5) − 1 = 12.47% p.a.
✓ 80% total ROI | 12.47% annual CAGR | 1.8x multiple
Frequently Asked Questions
ROI and CAGR explained for investors
Is a higher ROI always better?
Not necessarily — ROI must be considered alongside the holding period, risk, and liquidity. A 50% ROI sounds great, but if it took 20 years (CAGR of just ~2%), it underperforms a savings account. Always compare annualized CAGR against alternative instruments of similar risk, and ensure ROI is above your inflation rate to represent real wealth creation.
How do I calculate ROI on a rental property?
Total return includes both rental income and capital appreciation. ROI = [(Rental income over period + Capital gain) / Initial investment] × 100. For example, ₹50L invested, ₹6L rent over 3 years, flat worth ₹65L now — total gain is ₹21L on ₹50L = 42% ROI over 3 years, or ~12.4% CAGR. Subtract maintenance, property tax, and loan interest for accurate calculation.
Does this ROI calculator account for taxes and inflation?
This calculator computes nominal (pre-tax, pre-inflation) ROI and CAGR. To estimate real returns, subtract the inflation rate from the CAGR. For tax-adjusted returns, deduct LTCG (12.5% on gains above ₹1.25L for equity held over 1 year) or STCG (20% for equity held under 1 year) from the net profit before computing effective ROI.