ROI Calculator
Calculate Return on Investment for any project, campaign, or asset. Get ROI %, net profit, payback period, annualised return, NPV, and break-even analysis with year-by-year projections.
ROI %
Payback period
Annualised return
NPV & IRR
Break-even
Free to use
Investment Type
Investment Details
$
Total upfront cost$
Total value / proceeds received$
Recurring costs per yearyrs
Duration of investment%
For real return adjustment%
Capital gains / income tax %
Display currency
ROI Results
ROI
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Return on Investment
Press Calculate
Net Profit
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Total Gain / Loss
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Payback Period
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Years to recover cost
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Annualised ROI
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CAGR equivalent
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Performance Breakdown
Return Ratio
Net Profit Margin
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Net profit as % of total return
Real Return (After Inflation)
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Inflation-adjusted annualised ROI
Investment Journey
Cumulative Return
Total Cost (Invested)
Net Profit
Real Value (Inflation Adj.)
ROI Scenarios
🔴 Pessimistic (−25%)
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Return 25% below expected
🟢 Base Case
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Your expected return
🔵 Optimistic (+25%)
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Return 25% above expected
Detailed Metrics
Gross Return
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Before costs deducted
Total Cost
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Initial + ongoing costs
After-Tax Net Profit
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Net of gains tax
After-Tax ROI
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%
Post-tax return %
Real Return
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% p.a.
Inflation-adjusted CAGR
NPV
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Net Present Value
IRR
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% p.a.
Internal Rate of Return
Break-Even Revenue
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Minimum to recover cost
Year-by-Year Projection
| Year | Annual Return | Annual Cost | Net Cash Flow | Cumulative Return | Cumulative Cost | ROI to Date |
|---|---|---|---|---|---|---|
| Press Calculate ROI to generate projection | ||||||
Formula Reference
ROI = (Net Profit / Cost) x 100Basic return on investment formula
Net Profit = Return − Total CostGross return minus all costs
CAGR = (FV/PV)^(1/n) − 1Compound annual growth rate
Payback = Cost / Annual Cash FlowYears to recover initial investment
NPV = Sum of PV(Cash Flows) − CostNet present value at discount rate
Real ROI = (1+r)/(1+i) − 1Fisher equation, inflation-adjusted
Common Questions
What is ROI and how is it calculated?
Return on Investment (ROI) measures the profitability of an investment relative to its cost. The formula is: ROI = (Net Profit / Cost of Investment) × 100. For example, if you invest $50,000 and receive $75,000 back, your net profit is $25,000 and your ROI is 50%. ROI is one of the most widely used metrics to evaluate investment performance across all asset classes.
What is the difference between ROI and annualised ROI (CAGR)?
ROI gives the total return over the entire investment period — it does not account for how long the investment was held. Annualised ROI (CAGR) standardises the return to a per-year rate, making investments of different durations comparable. Formula: CAGR = (Final Value / Initial Value)^(1/years) − 1. A 50% ROI over 2 years is a ~22.5% CAGR, while over 5 years it is only ~8.4% CAGR.
What is NPV and why does it matter?
Net Present Value (NPV) discounts future cash flows back to today’s value using a hurdle rate (your required return / WACC). A positive NPV means the investment creates value above your required return rate. A negative NPV means it destroys value. NPV is superior to simple ROI for comparing projects with different timelines or cash flow patterns because it accounts for the time value of money.
What is a good ROI?
A “good” ROI depends heavily on asset class and risk: Stock market historically ~10% p.a.; Real estate typically 8-12% p.a.; Marketing campaigns a 5:1 ratio (500% ROI) is considered strong; Business projects should exceed your WACC (typically 8-15%). Always compare ROI against the risk-free rate (e.g. government bonds) and your opportunity cost — what else you could do with the capital.
What is the payback period?
The payback period is the time it takes for an investment to generate enough cumulative cash flows to recover the initial cost. It is calculated as: Payback = Initial Cost / Annual Net Cash Flow. A shorter payback period means lower risk. Most businesses target a payback period of 2-5 years for capital projects. Note that the payback period does not account for cash flows beyond the payback point or the time value of money.
How does inflation affect real ROI?
Inflation erodes purchasing power. If your ROI is 10% p.a. but inflation is 4%, your real return = (1.10 / 1.04) − 1 = 5.77% p.a. (Fisher equation). This means your actual increase in purchasing power is only 5.77%, not 10%. Always evaluate investments in real (inflation-adjusted) terms for long-horizon decisions.
Results are for illustrative and planning purposes only. Investment returns are not guaranteed. Past performance does not predict future results. Consult a qualified financial advisor before making investment decisions.
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Also see: SIP Calculator
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FIRE Calculator
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Compound Interest Calculator