ROI Calculator India 2025-26 Return on Investment for Stocks, Mutual Funds, Real Estate, Business & Fixed Deposits

Updated: 17 Jun 2026  |  Basic ROI · Annualised ROI · Investment Comparison  |  Nifty, FD, Gold, Real Estate presets

₹1,00,000
₹1K₹1 Cr
₹1,50,000
₹1K₹2 Cr
₹0
₹0₹1L (brokerage, tax, fees)

Quick scenario presets (Indian benchmarks):

ROI

50.0%

₹1L invested → ₹1.5L returned

Wealth Gain

₹50,000

after costs

Annualised ROI

14.5%

per year (CAGR)

How your ROI compares to Indian benchmarks

Break-even point

Investment recovered + profit after 3 years

ROI comparison — ₹1,00,000 invested across Indian asset classes

Asset / Instrument 1 Year 3 Years 5 Years 10 Years CAGR

How ROI is Calculated in India — Formula, Meaning & Step-by-Step Method

ROI (Return on Investment) is the most fundamental metric to evaluate whether an investment made money, how much, and how it compares to alternatives. Used across personal finance (stocks, mutual funds, real estate), business (marketing campaigns, capital expenditure), and professional trading in India. Unlike CAGR, ROI does not factor in time — which is why annualised ROI (equivalent to CAGR) is always recommended for comparing investments of different durations.

ROI Formulae — Three Essential Variants

1. Basic ROI (most common)

ROI % = [(Final Value − Initial Investment − Costs) ÷ Initial Investment] × 100

2. Annualised ROI / CAGR (for time-adjusted comparison)

Annualised ROI = [(1 + ROI/100)^(1/Years) − 1] × 100

3. Net ROI after costs (most accurate for India — includes taxes, brokerage)

Net ROI = [(Final Value − Cost of Investment − All Costs − Taxes) ÷ Cost of Investment] × 100

Step-by-Step ROI Calculation — Indian Stock Portfolio Example

  1. 1Bought 100 shares of Infosys at ₹1,400 in Jan 2023 → Investment = ₹1,40,000
  2. 2Sold 100 shares at ₹1,900 in Jan 2025 → Final Value = ₹1,90,000
  3. 3Costs: Zerodha brokerage ₹40 + STT ₹190 + stamp duty ₹100 + LTCG tax ₹3,250 = Total costs ₹3,580
  4. 4Net Gain = ₹1,90,000 − ₹1,40,000 − ₹3,580 = ₹46,420
  5. 5ROI = ₹46,420 ÷ ₹1,40,000 × 100 = 33.2% ROI over 2 years
  6. 6Annualised ROI = (1.332)^(1/2) − 1 = 15.4% per year — better than Nifty 50’s ~13.5% CAGR

ROI vs Absolute Return

Both mean the same thing — percentage gain on invested capital. “Absolute return” is the SEBI/AMFI term used in mutual fund factsheets for returns up to 1 year.

ROI vs CAGR

ROI ignores time. CAGR/Annualised ROI accounts for time. A 50% ROI over 10 years = 4.1% CAGR — poor. A 50% ROI over 2 years = 22.5% CAGR — excellent.

ROI vs XIRR

ROI is for lumpsum. XIRR is for multiple cashflows at different dates (SIPs, dividends). For SIP investments, always use XIRR — not ROI — for accuracy.

3 Real Indian ROI Examples — Stock Investment, Real Estate & Small Business

Practical ROI calculations from real Indian scenarios including taxes, transaction costs, and opportunity cost comparisons.

1

Arjun Sharma — IT Sector Stock Portfolio ROI, Bengaluru 📈

Software engineer invested ₹5 lakh across TCS, Infosys, and Wipro in April 2022. Calculated ROI in April 2025 (3 years).

Invested
₹5,00,000
Apr 2022
Portfolio Value
₹7,25,000
Apr 2025
Costs + LTCG Tax
−₹15,300
STT+tax+brok
Net ROI
41.9%
13.0% CAGR
Cost breakdown matters: Arjun’s gross gain = ₹2,25,000 (45% ROI). After deducting: LTCG tax on ₹1L+ gains at 12.5% = ₹15,625 (Budget 2024 rate, on gains above ₹1.25L); STT on sale ₹870; Zerodha brokerage ₹40; stamp duty ₹250. Net gain: ₹2,09,215. Net ROI: 41.8% over 3 years = 12.4% annualised ROI. Compared to Nifty 50’s ~11.4% CAGR in the same period — Arjun’s IT stock picks outperformed by ~1%. Dividend income (₹8,500 received over 3 years) adds another 1.7% to total return.
2

Meena & Ravi Pillai — Residential Flat ROI vs Rental Income, Hyderabad 🏢

Couple bought 2BHK in Kondapur, Hyderabad for ₹65L in 2019. Rented it for 5 years; evaluating ROI in 2025 before deciding to sell.

Total Investment
₹72,50,000
₹65L + stamp duty + renovation
Current Value
₹1,12,00,000
Valued Jun 2025
Rental Income (5yr)
+₹10,80,000
₹18K/mo avg
Total ROI
69.4%
11.1% CAGR
Full real estate ROI calculation: Price gain = ₹1,12L − ₹72.5L = ₹39.5L. Rental income over 5 years = ₹10.8L. Total gross gain = ₹50.3L. Costs: Maintenance ₹3.6L (₹6K/yr×5yr) + Society charges ₹1.8L + Property tax ₹90K + Home loan interest ₹6.2L (if loan taken) + Income tax on rent at 30% bracket (₹3.24L on rental income after 30% standard deduction). Net gain (no loan): ~₹38.7L. ROI 53.4%. Annualised: 9.0% CAGR. Hyderabad tech corridor has been India’s best-performing real estate market 2020–2025. Leverage (home loan) can amplify equity ROI significantly — if only ₹20L was own equity and rest was bank loan, equity ROI would be ~193%.
3

Kavitha Sundaram — Cloud Kitchen Business ROI Calculation, Chennai ☁️🍱

Homemaker turned entrepreneur launched a Zomato/Swiggy cloud kitchen in Jan 2023. Measuring ROI after 2 years to decide whether to expand.

Total Investment
₹4,20,000
Setup + 3mo working capital
Cumulative Net Profit
₹2,86,000
After GST, salary, rent
Business ROI
68.1%
Over 2 years
Annualised ROI
30.1% p.a.
Vs FD at 7%
Business ROI interpretation: Setup costs: kitchen equipment ₹1.8L, security deposit ₹90K, Zomato/Swiggy onboarding ₹30K, working capital 3 months ₹1.2L = Total ₹4.2L. Monthly revenue: ₹1.8L by month 6, ₹2.4L by month 18. Net profit margin ~14% after food cost 35%, platform commission 23%, rent ₹25K, electricity ₹8K, one helper ₹12K. Cumulative 2-year net profit ₹2.86L. ROI = 68.1% in 2 years = 30.1% annualised. This beats Nifty 50 (11% CAGR), FD (7%), and PPF (7.1%) but carries operational risk, time investment (~10hr/day), and GST compliance burden. Kavitha is now expanding to a second kitchen using retained profits — no external capital needed.

5 Expert Tips to Accurately Measure and Maximise ROI on Indian Investments

Techniques used by SEBI-registered advisers and seasoned Indian investors to avoid ROI calculation errors.

01

Always Include ALL Costs in Your ROI Denominator — Indian Investors Routinely Undercount

Indian investors typically report only the capital gain while ignoring transaction costs that significantly reduce actual ROI. For equity: include STT (0.1% on delivery buy+sell), brokerage, LTCG/STCG tax (12.5%/20% post Budget 2024), stamp duty, and DP charges. For real estate: include stamp duty (5–7%), registration charges (1%), brokerage (1–2%), renovation costs, property tax paid over holding period, and maintenance charges. For business: include opportunity cost of your own time (what salary would you have earned?). Missing these costs can inflate reported ROI by 5–20% — always compute the net, after-tax, after-cost ROI for an honest comparison.

02

Convert Absolute ROI to Annualised ROI Before Comparing Any Two Indian Investments

A 50% ROI sounds impressive — but context is everything. 50% ROI in 1 year (small-cap bull run) = 50% annualised ROI, exceptional. 50% ROI in 10 years = 4.14% annualised ROI, worse than a savings account. Always annualise: Annualised ROI = (1 + ROI/100)^(1/Years) − 1. When a fund manager, Zerodha blog, or mutual fund factsheet quotes absolute return without mentioning the period, ask: “Over how many years?” SEBI mandates mutual funds display CAGR (annualised ROI) for all schemes over 1 year old, precisely because absolute return is misleading. Use this calculator’s “Annualised ROI” mode to always compare apples to apples.

03

Calculate Real ROI (After Inflation) — Nominal 12% ROI Often Means Just 6% Real Growth in India

India’s CPI inflation has averaged 5–6% over the past decade. A 12% nominal ROI (Nifty 50 CAGR) translates to only ~6% real ROI. Formula: Real ROI = [(1 + Nominal ROI) ÷ (1 + Inflation)] − 1. For a ₹10 lakh investment yielding 12% nominal for 20 years: Nominal corpus = ₹96.5L. Real corpus (at 5.5% inflation): ₹34.8L in today’s purchasing power — still impressive, but 64% less than the headline number. Compare: Bank FD at 7% nominal → ~1.4% real ROI, barely above zero. PPF at 7.1% → ~1.5% real ROI. This is the mathematical reason why long-term wealth creation in India requires equity allocation — it is the only asset class with consistently positive real ROI over 15+ year periods.

04

For Business ROI in India, Add Opportunity Cost of Your Own Time — Most SME Owners Miss This

Business ROI calculations for Indian MSMEs frequently miss the founder’s own time cost. If you run a business generating ₹3L net profit after paying a helper’s salary but you work 10 hours/day, 6 days/week — your opportunity cost at ₹500/hour = ₹15,60,000/year. Suddenly a business “making ₹3L profit” is actually losing ₹12.6L when your time is properly valued. True business ROI = (Net Profit − Owner’s Time Value) ÷ Total Capital Invested × 100. This mental model helps Indian entrepreneurs decide when to scale (when ROI remains high even after paying management), when to exit (negative adjusted ROI), and when to invest in automation (when automation ROI exceeds owner’s time ROI). Many successful Indian startup decisions — hiring a manager, automating GST filing, outsourcing delivery logistics — are fundamentally ROI calculations on time.

05

Use the ROI Hurdle Rate Concept — Every Indian Investment Must Beat Inflation + Risk Premium

Not every positive ROI is worth pursuing. Every investment should be measured against a hurdle rate — the minimum acceptable ROI given the risk taken. Indian hurdle rates by asset class: Safe assets (FD, PPF, Liquid MF): 7–8% nominal ROI as minimum (current guaranteed rate); Equity (Nifty 50 index): 12–14% annualised ROI as minimum to justify equity risk vs debt; Real estate: 10–12% total return (price + rent) as minimum, given illiquidity and high transaction cost; Business/startup: 25–30% annualised ROI minimum to justify entrepreneurial risk vs a stable job. If an investment doesn’t clear its hurdle rate, your capital is better deployed elsewhere. This is the framework used by Indian VCs (fund hurdle rate: 20–25% IRR), PE firms, and sophisticated retail investors. Set your personal hurdle rates before investing — and measure every investment against them annually.

Frequently Asked Questions — ROI Calculator, Investment Returns & Business Profitability India

What is ROI meaning in India and how is it calculated?+
ROI = [(Final Value − Investment − All Costs) ÷ Investment] × 100. It measures percentage gain on deployed capital. SEBI calls it “Absolute Return” for mutual funds under 1 year; CAGR for funds over 1 year. Used across personal finance, real estate, and business in India.
What is a good ROI for Indian investments in 2025-26?+
Good annualised ROI benchmarks: FD 6.5–7.5%; PPF 7.1%; Gold 8–12%; Nifty 50 12–14% CAGR; Large cap MF 13–16%; Mid/small cap MF 15–22%; Real estate 8–14% (price + rent); Business 20–35%+. Any investment below India’s inflation rate (~5.5%) has negative real ROI — you’re losing purchasing power.
What is the difference between ROI and CAGR?+
ROI ignores time. CAGR is time-adjusted (annualised) ROI. A 300% ROI in 10 years = 14.9% CAGR. A 300% ROI in 3 years = 44.2% CAGR — dramatically different performance. Always convert ROI to annualised/CAGR before comparing investments of different durations.
How to calculate ROI on real estate in India?+
Total ROI = [(Sale Price + Total Rent − Purchase Cost − Stamp Duty − Registration − Renovation − Maintenance − Property Tax − Income Tax on Rent) ÷ Purchase Cost] × 100. Gross rental yield in Indian metros: 2–4.5%. Net yield after costs/taxes: 1.5–2.5%. Price appreciation adds 6–14% CAGR depending on city/micro-market.
What is the ROI of Nifty 50 over 1, 5, and 10 years?+
Nifty 50 approximate ROI (mid-2025): 1-year ~15–22%; 5-year ~95–120% (14–17% CAGR); 10-year ~230–280% (12.7–14.2% CAGR). These are price returns — add ~1.5%/year for TRI (Total Return with dividends). Your personal ROI will depend on exact entry/exit dates.
How to calculate ROI on mutual funds in India?+
Lumpsum: ROI = (Current Value − Investment − Exit Load − LTCG Tax) ÷ Investment × 100. LTCG on equity MF: 12.5% on gains above ₹1.25L (held 1+ year). STCG: 20% (held under 1 year). SIP: Use XIRR — not ROI — since each instalment has different investment date. Available in Groww, Zerodha Coin, MFCentral.
What is real ROI after inflation and why does it matter?+
Real ROI = [(1 + Nominal ROI) ÷ (1 + Inflation)] − 1. India’s CPI inflation ~5.5%. Bank FD at 7% → real ROI ~1.4%. Nifty 50 at 13% → real ROI ~7.1%. Savings account at 3.5% → real ROI −1.9% (losing purchasing power). Only equity and premium real estate consistently deliver positive real ROI over 10+ years in India.
What is the ROI on gold investment in India?+
5-year ROI (2020–2025): ~90–100% (~14–15% CAGR); 10-year ROI (2015–2025): ~150–170% (~9.5–10.5% CAGR). SGB (Sovereign Gold Bond) adds 2.5%/year interest + zero LTCG at maturity = effective ROI 2–3% higher than physical gold, making it the best gold investment form in India.
What is PPF vs ELSS vs FD ROI comparison in India?+
10-year post-tax ROI (30% bracket): PPF 7.1% (EEE — fully tax-free, best for risk-averse); Tax Saver FD 4.55–5.25% (taxable); ELSS MF 12–14% (LTCG at 12.5% above ₹1.25L). ELSS delivers 2× CAGR of PPF over 10+ years. PPF is better for capital preservation; ELSS for wealth creation.
How to improve stock market ROI in India?+
(1) Index investing beats 60–65% of active large-cap funds on after-expense ROI; (2) SIP disciplines buy price averaging; (3) Hold 1+ year for LTCG rate (12.5% vs 20% STCG); (4) Tax loss harvesting before March 31; (5) Zero-commission platforms (Zerodha, Groww) save 0.3–0.5% annual drag vs full-service brokers.
What is marketing ROI for Indian businesses?+
Marketing ROI = [(Revenue from campaign − Campaign cost) ÷ Campaign cost] × 100. Indian benchmarks: Google Shopping 400–600%; Meta/Facebook ads (D2C) 200–350%; Email marketing 800–1,200%; SEO (established site) 500–2,000%+. ROI above 500% is excellent; below 200% needs optimisation.
What is negative ROI and which investments have it in India?+
Negative real ROI means purchasing power declines despite nominal gains. Investments with often-negative real ROI: Savings accounts (3.5–4% vs 5.5% inflation); Jan Dhan accounts (2.75%); LIC endowment plans (4–6% IRR); Short-term FDs. These preserve nominal capital but are poor long-term wealth builders.
How is ROI taxed on stocks and real estate in India?+
Equity (held 1+ year): LTCG 12.5% on gains above ₹1.25L (Budget 2024). Equity (held under 1 year): STCG 20%. Debt MF: Taxed at income slab (post April 2023 purchase). Real estate (held 2+ years): LTCG at 20% (indexation mostly removed Budget 2024). Business income: Taxed at applicable slab. Dividends: Taxed at recipient’s slab. Always calculate net after-tax ROI for fair comparison.
What is ROI on solar panel installation in India?+
3kW rooftop solar: cost ₹1.5–1.8L (after PM Surya Ghar subsidy ₹18–30K). Annual savings: ~₹34,560. Payback: 4–5 years. ROI: ~23%/year thereafter. Over 25-year panel lifespan: ROI of 575%+. One of the most certain, high-ROI investments available to Indian homeowners today.
What is ROI vs payback period for Indian business investments?+
ROI = percentage return on capital. Payback = time to recover initial investment (Initial Investment ÷ Annual Net Cash Flow). Use both together: payback shows liquidity risk; ROI shows efficiency. Excellent Indian investments: Payback under 5 years + ROI above 15%.
How to calculate ROI for MSME business owners in India?+
MSME ROI = Net Profit ÷ Total Capital Deployed × 100. Critical: subtract your own market salary from profits first. A business making ₹8L profit but requiring your full-time work (worth ₹6L/year) has effective ROI of only ₹2L ÷ invested capital. Typical benchmarks: Kirana 12–20%; Cloud kitchen 25–40%; IT services 50–200%+.
What is ROI on education and upskilling in India?+
Education ROI = [(Annual salary increase × Career years − Education cost) ÷ Education cost] × 100. IIM MBA ₹30L cost → ₹15L salary increase/year: 20-yr career ROI = 900%. Online Data Science cert ₹50K → ₹3L/year increase for IT pros: 10-yr ROI = 5,900%. Education in high-demand fields (AI, finance, data) offers among the highest ROI of any investment in India.
How to use the ROI calculator for SIP investments?+
For lumpsum MF: use Basic ROI mode — enter invested amount, current value, and LTCG tax as cost. For SIP: this calculator gives lumpsum ROI; your actual XIRR will differ. Use Groww/Zerodha Coin’s built-in XIRR or Excel =XIRR() for SIP accuracy. The Compare mode is ideal for benchmarking your fund vs Nifty 50.
What is franchise ROI in India?+
Franchise ROI ranges: Amul Parlour (₹2–6L): 15–25%; Lenskart (₹20–25L): 25–35%; Subway (₹25–40L): 20–35%; Education franchises: 18–30%. Always verify with existing franchisees — get actual P&L, not projections. Good franchise investments have payback under 3 years and ROI above 25%.
Real estate vs stock market ROI — which is better in India?+
10-year comparison: Real estate average metro 9–12% CAGR total (price + rent); Nifty 50 ~13.5% CAGR. Equity wins on pure ROI. But real estate offers leverage (home loan amplifies equity ROI to 25–40%), tax benefits (80C, 24b), rental income, and lifestyle value. Best approach: 60% equity + 40% real estate for long-term wealth creation.
What is the ROI on a digital marketing agency in India?+
Digital agencies have extremely high capital ROI (50–200%+ annualised) because the asset is intellectual capital, not physical. 5 clients × ₹75K retainer = ₹3.75L/mo. After team (₹1.2L) and tools (₹20K): net profit ₹2.35L/mo on ₹2.5L initial setup capital. Payback: ~1 month. Scale by hiring before revenue inflection point.
What is ROE vs ROI vs ROCE for Indian company analysis?+
ROE = Net Profit ÷ Shareholder Equity (investor perspective); ROCE = EBIT ÷ Capital Employed (operational efficiency); ROI = Net Profit ÷ Total Investment (broadest metric). Nifty 50 average ROE: 15–18%. Infosys FY2024 ROE: ~30%; HDFC Bank ROE: ~17%. SEBI mandates listed companies disclose these in annual reports. ROE above 15% and ROCE above 20% are signs of quality Indian businesses.

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Disclaimer — ROI Calculator (CalcWise Finance)

The ROI calculations, investment benchmarks, and asset class return data provided by this tool are indicative and for educational purposes only. CalcWise Finance is not a SEBI-registered investment adviser, portfolio manager, or research analyst. Nothing on this page constitutes investment advice, a buy/sell recommendation, or a guarantee of returns.

Historical ROI data for Nifty 50, mutual funds, gold, and real estate is sourced from publicly available information (NSE India, AMFI, NHB Residex) and is subject to change. Past performance is not indicative of future results. Tax rates referenced reflect Finance Act 2024 provisions — consult a chartered accountant for your specific tax liability. Business ROI examples are illustrative and actual results will vary based on market conditions, competition, execution, and individual business factors.

All investments are subject to market risks. Read all scheme-related documents before investing in mutual funds. For personalised investment advice, consult a SEBI-registered investment adviser. CalcWise Finance assumes no liability for decisions made based on this calculator. Regulatory authorities: Investment advisers in India are regulated by SEBI — sebi.gov.in. For mutual fund information: AMFI India — amfiindia.com. Investor grievance: SEBI SCORES — scores.sebi.gov.in. Last Updated: 17 Jun 2026.