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ROI Calculator

Calculate the exact Return on Investment (ROI) percentage and net gains from any capital expenditure or investment project.

Calculator Inputs

Live
Currency:
10010,000,000
10020,000,000
Calculation Results
Return on Investment (ROI)
70%
Investment Multiple: 1.7x
Net Profit
₹35,000
Capital Invested
₹50,000
Total Value Returned
₹85,000
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How to use the ROI Calculator

  1. 1Enter the total capital amount invested.
  2. 2Enter the total gross amount returned (or final value of the asset).
  3. 3Review your net gain/loss, ROI percentage, and total return multiple.

How ROI is Calculated

ROI measures the efficiency and profitability of an investment by comparing net gain against initial cost.

Mathematical Formula
Net Profit = Amount Returned - Amount Invested ROI (%) = (Net Profit / Amount Invested) × 100
Formula Variables & Logic

Amount Invested is the cost basis, and Amount Returned is the total final cash returned.

Worked Example: Equipment Upgrade ROI
Sample Calculation
Scenario: A company invests $25,000 into automated packaging machinery and generates $42,000 in operational cost savings and revenue.
Step-by-step breakdown
  1. 1Net Profit = $42,000 - $25,000 = $17,000
  2. 2ROI = ($17,000 / $25,000) × 100 = 68.00%
  3. 3Multiple = $42,000 / $25,000 = 1.68x
Estimated Result
The ROI is 68.00% with a 1.68x return multiple.

What affects ROI results

  • Holding period or time frame of the project.
  • Hidden operational maintenance or financing expenses.
  • Taxes on realized capital gains.
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Frequently Asked Questions

What is a good ROI for business investments?

An annual ROI exceeding the company cost of capital (typically 10-15%) is positive, while high-risk ventures often target 25% or higher.

Does standard ROI factor in the time value of money?

Standard simple ROI does not factor in annual compounding; for multi-year investments, consider our CAGR calculator as well.

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