ROI Calculator

What is ROI?

ROI (Return on Investment) measures how much profit or loss you made relative to the amount you invested, expressed as a percentage. ROI = (Net Profit ÷ Initial Investment) × 100.

What is annualized ROI and why does it matter?

Annualized ROI converts your total return into a per-year equivalent, making it easy to compare investments held for different time periods. A 100% return over 10 years is only ~7.2% per year — very different from 100% in 2 years (41.4%/year).

What is a good ROI?

It depends on the investment type and risk. The S&P 500 has historically returned ~10% per year. Real estate typically returns 8–12% annualized. A 'good' ROI is one that exceeds your cost of capital and beats relevant benchmarks.

What is the formula for ROI?

Simple ROI = (Final Value − Initial Investment) ÷ Initial Investment × 100. Annualized ROI = (Final Value ÷ Initial Investment)^(1÷Years) − 1, expressed as a percentage.

What does a 2× or 3× return multiple mean?

A return multiple (also called MOIC — Multiple on Invested Capital) shows how many times you got your money back. A 2× return means you ended with double what you invested; a 3× means triple, etc.

Does ROI account for inflation?

Standard ROI is a nominal figure and does not adjust for inflation. To find your real return, subtract the annual inflation rate from your annualized ROI. A 10% nominal ROI during 4% inflation equals roughly 6% real ROI.

How is ROI different from IRR?

IRR (Internal Rate of Return) accounts for the timing of cash flows — useful when money is invested or returned at different points. ROI is simpler and ignores timing. For projects with multiple cash flows or staged returns, IRR is more accurate.

Can ROI be negative?

Yes. A negative ROI means your final value is less than your initial investment — you lost money. For example, if you invested ₹10,000 and it's now worth ₹7,000, your ROI is −30%.