How this calculation works
This is a simple total return, not an annualized return. Include all costs and proceeds consistently in the entered values.
ROI (%) = (final value − initial investment) ÷ initial investment × 100A worked example
An investment increasing from ₹10,000 to ₹12,500 has a 25% total ROI.
Good to know
Uses the stated formula and assumptions. Displayed decimal values are rounded; use consistent units for all inputs.
The same total return can hide a very different timeline
Turning ₹10,000 into ₹12,500 gives a 25% total ROI whether it takes one year or ten years. The calculation is the same, but the time commitment is not. A total return therefore cannot fairly compare investments with different durations by itself.
Use an annualized measure such as CAGR when its no-intermediate-cash-flow assumptions fit. If deposits or withdrawals occur during the period, the timing of those cash flows requires a more appropriate return measure.
Include proceeds and costs on the same basis
The final value should reflect the value and proceeds you intend to compare with the initial outlay. Omitting fees or adding distributions inconsistently can make a simple ROI look better or worse than the actual economic outcome.
This tool does not account for risk, inflation, taxes or the probability of receiving the final value. Two opportunities with the same calculated ROI can have very different uncertainty and liquidity.
A few questions, answered
Can ROI be negative?
Yes. A final value below the initial investment produces a negative return.
Is this an annual return?
No. It is the total simple return over the period represented by your inputs.