How to use ROI Calculator
Simple return on investment measures the net gain relative to the cost. Include purchase costs and relevant fees in the cost input, and include sale proceeds and any distributions in the total returned amount.
ROI is a total-period percentage and does not account for how long the investment lasted. Two investments with the same ROI over different durations are not directly comparable by annual performance. Use CAGR only when its no-intermediate-cash-flow assumption fits.
The formula
A worked example
Total investment cost (₹): 10000 · Total amount returned (₹): 12500
Return on investment: 25%
Simple total ROI; it is not annualised. Include fees in cost and cash distributions in the total returned amount.
Questions about this calculation
Can ROI be negative?
Yes. The ROI is negative when the amount returned is below the investment cost.
Does 25% ROI mean 25% per year?
No. This tool does not use a duration and therefore does not annualise the result.
Formula checks: 2026-10-08. Assumptions & corrections.