ROI Calculator

For stock market investments: 12-15% annual ROI is good. Real estate: 8-12% ROI including rental yield. Business ventures: 20-25% ROI is excellent. Marketing campaigns: 5:1 ROI (500%) is considered strong. However, good ROI depends on industry, risk level, and time period. Always compare with alternative investment options.

ROI shows total return percentage without considering time: (Gain/Cost) × 100. CAGR shows annualized compounded return over time. Example: 100% ROI over 5 years = 14.87% CAGR. Use ROI for short-term gains or comparing similar time periods. Use CAGR for long-term investments and different time periods.

Yes, for accurate ROI, include all costs: capital gains tax, dividend tax, transaction fees, brokerage charges. This gives you 'net ROI' or 'after-tax ROI'. For example, 20% ROI becomes 15% after-tax if you're in 30% tax bracket on short-term gains. Always plan with after-tax ROI for realistic expectations.

Yes! ROI above 100% means you more than doubled your money. 100% ROI = doubled, 200% ROI = tripled. Multibagger stocks can deliver 500-1000%+ ROI over years. However, very high ROI usually involves high risk or long time periods. Be skeptical of guaranteed high ROI promises - they're often scams.

Negative ROI means you lost money - final value is less than total investment plus costs. -20% ROI means you lost 20% of your investment. Common in failed businesses, poor stock picks, or bad timing. If an investment shows negative ROI after reasonable time, consider cutting losses and reallocating funds.

For SIP (multiple investments over time), simple ROI formula doesn't work accurately. Use XIRR (Extended Internal Rate of Return) which accounts for timing and size of each SIP installment. ROI calculator is best for lumpsum investments made at one time. For ongoing investments, XIRR gives more accurate returns.

Profit is absolute amount earned: Final Value - Total Cost. ROI is percentage return: (Profit / Total Cost) × 100. ₹50,000 profit on ₹1 lakh investment = 50% ROI. Same ₹50,000 profit on ₹5 lakh investment = only 10% ROI. ROI helps compare investments of different sizes fairly.

India's average inflation is 5-7%. To preserve purchasing power, you need at least 7%+ ROI. For wealth creation, target 12-15%+ ROI. Fixed deposits (6-7% ROI) barely beat inflation. This is why equity investments (12-15% long-term ROI) are essential for building real wealth over time.

Include purchase price, registration costs, and renovations as total cost. Annual ROI = (Annual Rent - Maintenance - Tax) / Total Cost × 100. Also calculate capital appreciation separately. Good rental property shows 6-8% rental yield + 8-10% appreciation = total 14-18% ROI. Don't forget to include property tax and maintenance in costs.

ROI is simple percentage return: (Gain/Cost) × 100. IRR (Internal Rate of Return) accounts for timing of cash flows and gives annualized return. For one-time investments, ROI is sufficient. For multiple cash flows (SIP, rental income, dividends), IRR is more accurate. IRR is more complex to calculate but gives better picture for recurring investments.

5% ROI is low for equity investments but acceptable for very low-risk investments like government bonds or fixed deposits. It barely beats inflation (5-7%). For stocks/mutual funds, aim for at least 12-15% ROI long-term. 5% ROI might be acceptable if investment is very safe and liquid, but won't create significant wealth.

For long-term investments (stocks, mutual funds): Review ROI annually or quarterly. For short-term trades: Calculate ROI after exit. For business decisions: Calculate expected ROI before investing and actual ROI after project completion. Avoid obsessing over ROI daily - short-term fluctuations are normal. Focus on long-term ROI trends over 3-5+ years.