How do you calculate ROI?

Subtract the cost from the final value, divide by the cost and multiply by 100. ($1,250 − $1,000) ÷ $1,000 = 25%.

What is annualised ROI?

It converts a total return into a yearly rate: (final ÷ cost)^(1/years) − 1. A 50% gain over 3 years is about 14.5% a year.

It depends on risk. Broad stock indexes have historically returned about 7–10% a year before inflation; safer assets return less.

ROI Calculator

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Updated Sep 2026

In short

ROI = (final value − cost) ÷ cost × 100. Investing $1,000 that grows to $1,250 is a 25% return. Annualised ROI = (final ÷ cost)^(1/years) − 1.

How it works

Return on investment measures the gain against what you put in: ROI = (final value − cost) ÷ cost × 100. Because that ignores time, the calculator also shows the annualised figure: ((final ÷ cost)^1/years − 1) × 100.

Enter what you paid, including fees — they are part of the cost.
Enter what it is worth now, or what you sold it for.
Add the holding period to turn a total return into a yearly one.

Always compare annualised returns, never totals: 50% over five years and 50% over two are very different investments.

Examples

Worked examples:

₹1,00,000 → ₹1,50,000 over 5 years: ROI 50%, annualised 8.45%.
₹1,00,000 → ₹1,50,000 over 2 years: same 50% total, annualised 22.47%.
A loss: ₹80,000 → ₹68,000: ROI −15%.

Video guide

ROI Calculator: frequently asked questions

How do you calculate ROI?: Subtract the cost from the final value, divide by the cost and multiply by 100. ($1,250 − $1,000) ÷ $1,000 = 25%.
What is annualised ROI?: It converts a total return into a yearly rate: (final ÷ cost)^(1/years) − 1. A 50% gain over 3 years is about 14.5% a year.
What is a good ROI?: It depends on risk. Broad stock indexes have historically returned about 7–10% a year before inflation; safer assets return less.