ROI Calculator 2024
Advanced Return on Investment Calculator with Inflation & Tax Adjustments
✓ Inflation Adjusted✓ Tax Impact✓ Annualized ROI✓ 100% Free
ROI Calculator
Calculate Return on Investment with advanced metrics
₹
Amount you invest initially
₹
Value after investment period
Duration of investment
Additional Investments
OffOn
Quick Presets:
Frequently Asked Questions (FAQs)
ROI is a performance measure used to evaluate the efficiency or profitability of an investment. It's calculated as (Gain from Investment - Cost of Investment) / Cost of Investment × 100%.
ROI shows total return over the entire period, while Annualized ROI converts it to an annual rate, making different investments comparable regardless of their time periods.
Inflation reduces purchasing power over time. A 10% nominal return with 6% inflation gives only 4% real return. Always consider inflation for true investment growth.
It varies by asset class: 6-8% for fixed deposits, 10-15% for mutual funds, 15-25% for stocks, and higher for real estate/startups. Consider risk tolerance and investment horizon.
Taxes reduce your actual profit. Long-term capital gains (over 1 year for stocks/equity funds) are taxed at 10% above ₹1 lakh, while short-term gains are taxed at 15% for equities.
ROI shows total return, while CAGR (Compound Annual Growth Rate) shows the year-over-year growth rate assuming profits are reinvested. CAGR is better for comparing investments of different durations.
Investment ROI Benchmarks
| Asset Class | Expected ROI | Risk Level | Time Horizon | Tax Efficiency |
|---|---|---|---|---|
| Savings Account | 3-4% | Very Low | Short Term | Taxable |
| Fixed Deposits | 6-8% | Low | 1-5 years | Taxable |
| Debt Mutual Funds | 7-9% | Low-Medium | 3+ years | Indexation Benefit |
| Equity Mutual Funds | 12-15% | Medium | 5+ years | 10% LTCG |
| Direct Stocks | 15-25% | High | 5+ years | 10% LTCG |
| Real Estate | 8-12% | Medium | 7+ years | Indexation Benefit |
| Gold | 8-10% | Low-Medium | 5+ years | 20% after 3y |
Note: Past performance doesn't guarantee future returns. Always consider your risk tolerance, investment horizon, and financial goals.
Understanding Return on Investment (ROI)
What is ROI?
Return on Investment (ROI) is a key financial metric used to evaluate the efficiency or profitability of an investment. It measures the return relative to the investment's cost. The basic formula is:
ROI = (Current Value - Cost) / Cost × 100%
📈 Simple ROI Example
You invest ₹1,00,000 in a business. After 1 year, you get back ₹1,20,000.
Profit: ₹20,000
ROI: (20,000 / 1,00,000) × 100 = 20%
📊 Annualized ROI
₹1,00,000 grows to ₹2,00,000 in 3 years.
Total ROI: 100%
Annualized ROI: (2/1)^(1/3) - 1 = 26%
💡 Pro Tip
Always consider inflation and taxes when calculating true returns. A 12% return with 6% inflation and 10% tax gives only about 4.8% real return!
