ROI Calculator
Return on investment, annualised ROI and payback period for any project or campaign.
Inputs
Formula
- Net profit = Return − Cost − (Running cost × years)
- ROI = Net profit / Total cost × 100
- Annualised ROI = [(1 + ROI)^(1/t) − 1] × 100
- Payback period = Total cost / (Net profit / years)
ROI expresses profit as a percentage of the capital committed, which makes projects of different sizes comparable. Annualising it is essential: a 60% return earned over four years is a mediocre 12.5% a year, while the same 60% in one year is exceptional. Payback tells you how long the capital is at risk.
Step-by-step calculation
- 1
Total cost
500,000 + 0 × 2
₹500,000
- 2
Net profit
800,000 − 500,000
₹300,000
- 3
ROI
profit / cost × 100
60.0%
- 4
Annualised
(1 + ROI)^(1/2) − 1
26.49%
Assumptions
- Returns are realised evenly over the period
- No discounting of future cashflows (use NPV/IRR for long projects)
Tips
- For projects longer than two years, complement ROI with NPV at your cost of capital.
- Include the opportunity cost of capital in the running cost to get an economic, not accounting, return.
Warnings
- Simple ROI ignores the time value of money and can favour slow projects that look large in total.
Standards & references
- Return on investment (management accounting)
- Payback period analysis
Frequently asked questions
What does the ROI Calculator do?
Return on investment, annualised ROI and payback period for any project or campaign. The ROI Calculator on OneCalcApp returns the result instantly as you type, together with the formula and the substituted values.
How do I use the ROI Calculator?
Enter your values in the input fields, choose the relevant units or options, and the ROI Calculator recalculates automatically. You can copy, print or export the result.
Is the ROI Calculator free to use?
Yes. The ROI Calculator is completely free, needs no sign-up and has no usage limit on OneCalcApp.
How accurate is the ROI Calculator?
It uses the standard formula Net profit = Return − Cost − (Running cost × years) and full double-precision arithmetic, so results match a manual calculation to the displayed number of digits.
Does the ROI Calculator work on mobile and offline?
Yes. The ROI Calculator runs entirely in your browser on phones, tablets and desktops, and your inputs never leave your device.
Where can I find related tools?
OneCalcApp hosts 300+ calculators and converters, including the full Business collection. Related tools are linked at the bottom of every page.
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