The Return on Investment (ROI) Calculator is an essential tool for evaluating the efficiency and profitability of any investment. Whether you are flipping a house, buying stocks, or starting a business, knowing your net percentage gain relative to your cost is the first step in successful financial tracking.
Market Intelligence
"ROI is the most misunderstood metric in India. A 10% gain sounds good, but if your cost of living rose by 7% and you paid 10% LTCG, your REAL ROI is near zero."
— Mahavir Hirani, Lead Analyst
The Return on Investment (ROI) Calculator is an essential tool for evaluating the efficiency and profitability of any investment. Whether you are flipping a house, buying stocks, or starting a business, knowing your net percentage gain relative to your cost is the first step in successful financial tracking.
How to Calculate ROI and CAGR?
ROI measures the total growth of an investment from start to finish. However, to compare investments of different durations, you must use Annualized ROI (CAGR).
Total ROI = [(Final Value - Cost) / Cost] × 100Where:
- • Annualized ROI = [(Final Value / Cost)^(1/Years) - 1] × 100
- • Final Value: The total amount received at the end.
- • Cost: The initial capital invested (plus any additional costs).
Example: Stock vs. Real Estate
Investment A (Stock): Buy at ₹100, sell at ₹150 in 2 years.
Total ROI: 50% | Annualized: 22.47%
Investment B (Real Estate): Buy at ₹10L, sell at ₹14L in 5 years.
Total ROI: 40% | Annualized: 6.96%
Conclusion: Even though Real Estate made more 'total' profit, the Stock was a much more efficient use of capital on an annual basis.
Investment Duration: Critical for comparison
Total ROI: Higher doesn't always mean better
CAGR: The true metric of performance
Frequently Asked Questions
⚠️ Disclaimer
The figures provided by this calculator are estimates based on the inputs you provide and standard financial formulas. STOCKCALC.IN does not offer investment advice. Please consult a qualified financial advisor before making any investment decisions.