ROI Calculator

Calculate the return on investment (ROI) percentage from an initial cost and final value.

  • Free to use
  • Accurate results
  • No registration required
  • Works on all devices
Enter your initial cost and final value to calculate ROI percentage.
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Your result

50.00%

ROI

AI explanation

Formula

ROI = (final value − initial cost) / initial cost × 100

Worked example

₹1L cost, ₹1.5L final value

Worked example: ₹1L cost, ₹1.5L final value
FieldValue
Initial cost100000
Final value150000
ROI50

Assumptions

  • Unlike CAGR, ROI does not account for how long the investment was held — a 50% ROI over 1 year is very different from 50% over 10 years.
  • Informational only.

Frequently asked questions

What is ROI?

Return on Investment measures the percentage gain (or loss) relative to the initial cost, without factoring in how long the investment was held.

Should I use ROI or CAGR to compare investments?

Use CAGR (see the Investment Return Calculator) when comparing investments held for different time periods, since it annualizes the return. ROI alone can be misleading if holding periods differ significantly.

Does ROI account for fees or taxes?

No — this is a simple gross return calculation. Subtract any fees, taxes, or transaction costs from your final value manually for a true net ROI.

Related calculators

Absolute Return CalculatorInvestment Return Calculator

Related articles

Finance1 min read

Why Average Return and CAGR Can Tell Very Different Stories

A +50% year followed by a -50% year averages to exactly 0%, but actually leaves an investment down 25% overall — a 13.4% annualized loss that the simple average return completely hides.

Read guide

Sources

This calculator provides a general estimate only and does not constitute investment advice.

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