💹 ROI Calculator
Enter investment cost and returns to instantly calculate ROI, annualised ROI (CAGR), payback period, and net profit. The Compare tab lets you put multiple investments side by side on a common CAGR basis - so you're not comparing a 1-year return against a 5-year return unfairly. Includes marketing ROI and ROAS calculator.
💹 ROI Calculator
⚖️ Compare Investments
Add investments to compare ROI, profit and payback side by side.
📢 Marketing ROI Calculator
Calculate return on your marketing campaigns.
📐 ROI Formulas
Basic ROI
Annualised ROI (CAGR)
Payback Period
Marketing ROI (ROAS vs ROI)
❓ Frequently Asked Questions
ROI Calculator - Understanding Return on Investment, CAGR and Payback Period
ROI is the most fundamental measure of investment performance - but using it correctly requires understanding its limitations. The basic formula (Net Profit ÷ Cost × 100) is simple, but comparing a 50% ROI over 5 years against a 30% ROI over 1 year is meaningless without annualisation. This calculator handles both the basic and annualised calculations, and puts multiple investments on a comparable CAGR basis.
ROI, CAGR, IRR - Three Metrics for Different Situations
ROI and CAGR
- Basic ROI: (Returns − Cost) ÷ Cost × 100. Simple, ignores time. Good for single-period comparisons at the same duration.
- CAGR (Annualised ROI): (Final÷Initial)^(1÷Years) − 1. Accounts for time. Best for comparing any two investments with different holding periods.
- Both assume money in and out at fixed points. Neither accounts for cash flows during the period.
IRR - For Complex Cash Flows
- IRR (Internal Rate of Return): the discount rate that makes NPV of all cash flows = 0
- Accounts for the timing of each cash flow - earlier returns are worth more
- Use for: multi-year projects with varied annual returns, real estate with ongoing rental income, private equity
- For simple buy-and-hold investments: CAGR is sufficient and easier to interpret
ROI Benchmarks by Investment Type (India)
Understanding what constitutes a good ROI requires context - different asset classes carry different risks and require different minimum returns:
- Bank FD: 6.5–7.5% p.a. Risk-free (DICGC insured). This is your floor - any investment should beat this to justify the additional risk.
- PPF: 7.1% p.a. Tax-free. Effective post-tax return beats most FDs for taxpayers in 20–30% bracket.
- Debt mutual funds: 6–8% p.a. (varies by fund). Short-to-medium term, lower risk.
- Gold: Approximately 8–10% CAGR in India over the last 20 years. Inflation hedge, but high volatility year-to-year.
- Real estate: 8–14% CAGR including appreciation and rental yield. Location-dependent, illiquid.
- Nifty 50 index funds: ~12–14% CAGR over 10–20 year horizons. Higher risk, highest long-term return for most retail investors.
- Business investment: Minimum hurdle rate of 15–25% to justify the risk, capital deployment, and management time involved.
Marketing ROI vs ROAS - An Important Distinction
For marketing campaigns, two related but different metrics are commonly used:
- ROAS (Return on Ad Spend): Revenue ÷ Ad Spend. A ROAS of 4 means ₹4 revenue for every ₹1 spent. Simple but ignores profit margins - ₹4 revenue at 20% margin is very different from ₹4 revenue at 60% margin.
- Marketing ROI: (Revenue × Gross Margin% − Ad Spend) ÷ Ad Spend × 100. Accounts for margin, giving the true profitability of the campaign. A 300% marketing ROI means ₹3 net profit per ₹1 spent.
Example: ₹50,000 ad spend generating ₹2,00,000 revenue at 35% gross margin. ROAS = 4.0. Marketing ROI = (2,00,000 × 0.35 − 50,000) ÷ 50,000 × 100 = 40%. A 4× ROAS sounds excellent; the true ROI of 40% on the ad spend is still good but tells a different story. Always use marketing ROI - not just ROAS - to evaluate campaign profitability.