ROI Calculator
Calculate Return on Investment (ROI) to measure profitability of investments and projects.
Calculate ROI
ROI Results
Understanding ROI
ROI measures how much profit or loss an investment generates relative to the amount invested. It's expressed as a percentage.
ROI = (Net Profit / Total Investment) × 100odede>Net Profit = Return - (Investment + Additional Costs)
Annualized ROI:
Annualized ROI = ((Final Value / Initial Value)^(1/years) - 1) × 100ROI interpretation:
• Positive ROI = Profitable investment
• Negative ROI = Loss
• Higher ROI = Better performance
Example:
Investment: NPR 5 lakh
Return: NPR 7.5 lakh after 3 years
ROI = (2.5 lakh / 5 lakh) × 100 = 50%
Annualized ROI = ~14.47% per year
FAQs
What is a good ROI?
Depends on investment type. Stocks: 10-15%, Real estate: 8-12%, Business: 15-30%, FD: 6-9%. Always compare with risk-free rate.
ROI vs IRR - which is better?
ROI is simpler but ignores time value of money. IRR is more accurate for multi-year projects with cash flows. Use both!
Should I include opportunity cost in ROI?
Not in basic ROI calculation. But consider it in decision-making – could your money earn more elsewhere?
How to calculate ROI for ongoing business?
Use net profit from specific period divided by total investment. For accuracy, use annualized ROI.
Does ROI account for inflation?
No, ROI shows nominal returns. For real returns, subtract inflation rate from ROI percentage.