ROI Calculator
Return on Investment (ROI) evaluates the efficiency and profitability of an investment or financial decision. It expresses net gain as a percentage relative to initial invested capital.
Input Calculation Parameters
₹
₹
Calculation Results
Net Profit / Gain
0
Return on Investment (ROI)
0
How the Calculation Works
ROI Formula = [(Final Value - Initial Cost) / Initial Cost] x 100.
Worked Example
Here is a step-by-step example calculation for ₹2 Lakh Business Investment generating ₹3.5 Lakh Total Revenue:
| Parameter | Value |
|---|---|
| Initial Cost | ₹200,000 |
| Net Profit | ₹150,000 |
| Roi | 75.00% |
Scenario Analysis
Comparing different tenures, interest rates, or investment horizons:
| Scenario Label | Key Metric |
|---|---|
| Positive ROI | Result: Profitable investment. |
| Negative ROI | Result: Loss incurred. |
Common Mistakes to Avoid
- Ignoring maintenance costs, taxes, and holding time when computing property or business ROI.
Frequently Asked Questions (FAQs)
What is a good ROI for business projects?
An ROI exceeding 15%-20% is generally considered strong for private commercial projects in India.
Can ROI be negative?
Yes, if final value is lower than initial investment cost, ROI will be negative, representing capital loss.
Authoritative Sources & Regulatory References
Author: SmartPaisa Financial Research Team
Reviewer: Reviewed by Financial Engineering Team
Last Reviewed: 2026-08-17
Financial Disclaimer: This calculator provides estimates for educational purposes only based on standard mathematical formulas and current Indian regulatory guidelines. Actual returns, taxes, or EMI payments may vary depending on bank policies, market volatility, or individual tax brackets. Consult a SEBI-registered investment advisor or Chartered Accountant (CA) before making financial decisions.
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