About roi calculator
Return on investment shows how much you gained compared with what you put in.
Formula
ROI % = (gain − cost) ÷ cost × 100. Buying for ₹2,00,000 and selling for ₹2,50,000 is a 25% ROI.
Include all costs
Fees, taxes, maintenance and time matter. Compare ROI over the same period, because 25% in one year is very different from 25% in five.
A worked example
A shop owner spends ₹2,00,000 on new equipment, and it brings in ₹80,000 of extra profit a year. After 3 years the gain is ₹2,40,000, so the ROI is (2,40,000 − 2,00,000) ÷ 2,00,000 = 20 percent over three years, or about 6.3 percent a year.
Compare over the same period
A simple ROI ignores time. A 20 percent return in one year is much better than 20 percent in five. Divide by the years, or use CAGR, to compare fairly.
