Disha

Calculators · ~2 min

ROI calculator

“Was this investment worth it?”

Return on investment as a total percentage and as an annualised rate, so projects of different lengths can be compared.

your return

Net gain

₹2,50,000

Total ROI

50.0%

Annualised ROI

14.47%

Use the annualised figure to compare investments held for different lengths of time.

the guide

ROI calculator: total and annualised return on investment

By Shivam Bhandari · Reviewed 31 October 2026 · How we write

Return on investment (ROI) measures how much you gained compared with what you put in. It helps decide whether a machine, marketing campaign, property or other investment was worth it.

Total ROI ignores time. Annualised ROI converts it into a yearly rate, so a 50% return over three years can be compared fairly with a 20% return over one year.

the formula

ROI % = (Return − Investment) ÷ Investment × 100 · Annualised = (Return ÷ Investment)^(1 ÷ Years) − 1

  • · Include all costs in the investment figure.
  • · Include all benefits (savings or income) in the return.

Worked example

  • ₹5,00,000 invested; worth ₹7,50,000 after 3 years.
  • Total ROI = 50%.
  • Annualised ROI ≈ 14.47% a year.

Tips

  1. 1Compare projects using annualised returns.
  2. 2Count hidden costs such as time, maintenance and financing.
  3. 3Measure marketing ROI on profit, not revenue.
  4. 4Compare ROI with your cost of capital or loan interest rate.

Frequently asked questions

How do you calculate ROI?

ROI % = (Gain − Investment) ÷ Investment × 100.

What is annualised ROI?

The equivalent yearly rate of return, calculated like CAGR, allowing investments of different lengths to be compared.

What is a good ROI?

It depends on risk and alternatives. At minimum, ROI should beat your borrowing cost and safer options.

How do I calculate marketing ROI?

(Profit from campaign − campaign cost) ÷ campaign cost × 100, using gross profit rather than revenue.