Return on Investment (ROI) Calculator
Measure the profitability of an investment as a percentage of the initial cost.
Investment Metrics (₹)
The total amount you initially invested/spent.
The amount you received back (sale price, maturity value, or total revenue).
Return on Investment (ROI)
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%
Net Profit or Loss
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₹ Profit
Why ROI is the Most Important Metric
The **ROI Calculator** is the gold standard for measuring efficiency. It doesn’t just tell you how much money you made, but what percentage you gained *relative to the capital you risked*. A higher ROI means the investment was more efficient.
The ROI Formula
The formula calculates the net gain and divides it by the cost: $$ROI = \frac{(\text{Final Value} – \text{Initial Cost})}{\text{Initial Cost}} \cdot 100$$ A positive ROI means a **profit**; a negative ROI means a **loss**.
Key Financial Uses (FAQ)
What is a good ROI?
A “good” ROI varies widely by industry. For low-risk investments (like bonds), a 4-6% ROI may be good. For high-risk, long-term ventures (like startups or real estate development), an ROI of 15% or higher is often sought to justify the risk.