ROI Calculator
Calculate Return on Investment for any investment
ROI Formula
ROI = [(Return - Cost) / Cost] × 100
= [(₹1,50,000 - ₹1,00,000) / ₹1,00,000] × 100
= 0%
Investments are made to get returns on it. For smart returns you must understand the dynamics of investments Vs returns. It is simple math, understand exactly how much return you're getting on your hard-earned money. A right ROI calculator makes the understanding easy for you.
A ROI calculator makes this easier by quickly showing you your real percentage gain or loss. This can help you confidently decide whether to stick with a stock, real estate deal, or mutual fund.
When you assess opportunities, this is particularly beneficial because it takes into consideration the initial investment and final value.
Why Do You Need a ROI Calculator?
People often make bad decisions when it comes to managing their personal finances or growing their investment accounts as they rely on gut feelings. At times they account rough estimates that don't take into account costs like taxes or brokerage fees.
A ROI calculator gives you an in-depth idea on what percentage of return you will get on the return. You can check the profitability on the investment made.
The calculator indicates the best picks that are safe investments alongside the worst ones which will possibly give low/poor returns.
It saves time and reduces stress during busy times when you have to make decisions, like at the end of the year or before adding to your SIPs.
What is a calculator for ROI?
A simple online tool called a ROI (Return on Investment) calculator tells you how much money you made from an investment by comparing the net profit to the original amount you put in.
The fundamental equation it uses is easy:
ROI = (Final Value - Initial Investment) / Initial Investment × 100.
The result tells you if you've gained (positive) or lost (negative).
This method takes everything into account, including costs, so both new and experienced investors can quickly understand how their investments are doing.
How does a ROI Calculator Help?
The calculator makes it easier to make smart investment decisions by turning complicated numbers into simple percentages. It helps you figure out which assets are really working for you, lets you compare stocks and FDs side by side, and shows you where you need to pay attention, like when high-fee funds are hurting your returns.
Overall, it gives you more confidence in your finances because you can change your plans on the fly without needing spreadsheets or expert help.
For example, an explanation of the ROI calculator
Here's a simple example: someone puts money into two options over the course of a year. The ROI calculator shows how it works in a table.
Investment | Initial Amount (₹) | Final Value (₹) | Costs (₹) | Net Profit (₹) | ROI (%) |
Stock A | 1,00,000 | 1,20,000 | 2,000 | 18,000 | 18% |
Fixed Deposit | 1,00,000 | 1,06,000 | 0 | 6,000 | 6% |
The 18% ROI on the stock example shows strong growth after brokerage fees are taken out. This is in contrast to the FD's safer but lower 6% ROI. This helps you see why stocks might be better for aggressive goals and FDs for conservative ones.
How to Use the Stockify ROI Calculator
These are the steps to use Stockify’s ROI Calculator:
For accurate results, you can enter the amount of initial investment you can make. Also assume and add costs like taxes or fees.
In the next step, enter the current or final value of your investment. This will be the market price, the amount you got from selling it. It can also be the amount you get when the investment matures.
Finally, click "calculate" to see your ROI percentage right away. Along with a breakdown of your profit or loss, so you can make changes right away.
Advantages of Using the Stockify ROI Calculator
Stockify's version stands out because:
It deals with Indian-specific issues like STT taxes and demat charges without any problems, giving you projections that match what happens in the local market without any extra work.
Its clean interface has visual gauges that make it easy to understand results, even if you're new to investing. It also lets you compare multiple portfolios at once.
Also, since it's free and works on any device, you can easily save calculations or export reports. This makes it great for sharing ideas during family finance talks or meetings with your advisor.
Use the Stockify Calculator to get a clear savings goal for yourself.
FAQ
A negative return on investment (ROI) means you lost money because the final value is less than the initial amount plus costs. This means it's time to rethink your position or get out of it.
ROI looks at the total return over any period of time, including capital gains. Simple interest only looks at fixed earnings and doesn't take market ups and downs into account.
Yes, change it by seeing the budget as an investment and the revenue as the final value to measure effectiveness in more than just stocks or real estate.
Basic ROI doesn't take time into account, so use annualized versions to compare quick flips with holdings that last for ten years.
It depends on how much risk you're willing to take. It's great for FDs or bonds, okay for stocks with historical averages of 12–15%, but always compare it to inflation, which is around 6%.
You can stay on top of your investments without over-managing them by checking them every three months or after big events like dividends or rebalancing.
To calculate ROI, it is simple. It is simple to find the profit or loss. You can take the final value gained and then subtract the total investment cost (including fees). Once done, divide the difference by the original price. To get the sum in percentage, multiply it by 100. ROI = (Gain - Cost) / Cost × 100 The output will give you a clear picture of whether you made a profit or loss.
To find the total ROI for a period of three years or more, use the basic formula on the starting and ending values. To find out how well something does over the course of a year, use this formula: [(Ending Value / Initial Value)^(1/3) - 1] × 100.
A 24% return on investment (ROI) indicates that you earn a good 24% of profit on the basic investment made. So for example, if you invested ₹2 lakh, it will give you ₹2.48 lakh net. It shows the company is doing well.
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