Return on Investment Calculator: Calculate Return on your Invested Amount

The ROI calculator is a simple online tool with an embedded formula it shows you how profitable is your investment. The ROI calculator is used to find the return on investment across various tenures. In the ROI calculator you have to enter your invested amount and the final returned amount, the calculator immediately shows the absolute percentage of return and the annualized return on investment

Return on Investment Formula

The ROI formula is based on 2 types of inputs, profit made from the investment and the cost of the investment, the ROI formula is as under:

Example: Ramesh had invested Rs. 100000 in an equity mutual fund 2 years ago and today if he withdraws all sum what he gets in hand is Rs. 120000 (after deducting all related charges). His ROI will be:

In this case, Return on investment is 20%

ROI calculations comparison table

Annualized ROI = (End value of Investment/beginning value of investment) ^{(1 / N)} – 1

Where N stands for the number of years

What is the ROI (Return on Investment)?

The ROI or the return on investment is the percentage return you get on your initial investment. As the risk is associated with investment across various assets, the ROI helps to gauge the profit or loss of your investment. In order to make an analysis of the return on investment one should take into consideration all the relevant costs or hidden charges into consideration and then only you get a correct return on investment. The ROI can be positive or negative, so the investment type should be correctly chosen by taking into consideration your risk appetite, expected returns, and the past performance of the asset

Limitations of the ROI calculator

How to use Return on Investment Calculator?

Return on Investment is a simple and easy-to-use calculator and is used in a below manner

1. Enter the amount you invested initially
2. Enter the amount returned
3. Enter the tenure of investment
4. And finally, you get the ROI and Annualized ROI

How can ROI Calculator help you?

The ROI calculator helps in multiple ways

1. The ROI calculator helps you compare different types of investments across different holding periods
2. It helps you compare absolute return and annualized return rate
3. The return on investment helps you in financial planning