Measure your ROI and annualised return

It depends on the asset class and timeframe. Equities historically deliver 12-15% CAGR over 10+ years; debt 6-8%; real estate 8-10%. "Good" ROI is anything that beats inflation + your opportunity cost.

ROI is the total return as a % over the entire period. CAGR is the equivalent annual rate. A 50% ROI over 3 years = 14.47% CAGR. Always use CAGR when comparing investments of different lengths.

The basic ROI formula does not. For a realistic comparison, subtract brokerage, taxes (LTCG/STCG/income tax), and fund management fees from your Final Value before calculating ROI.

Yes — if final value is less than the amount invested. A −20% ROI means you lost 20% of your principal. The calculator handles negative scenarios automatically.

ROI assumes a single investment and a single exit. IRR (Internal Rate of Return) handles multiple cash flows in and out across time — useful for SIPs, partial exits, dividend-paying investments.

Not always. Higher ROI usually means higher risk, longer lockup, or both. Risk-adjusted return (e.g., Sharpe ratio) is a better single number for ranking investments.

CAGR is the annualised rate that produces the total ROI when compounded over the holding period. A 50% total ROI over 3 years means just 14.47% per year — because compounding amplifies smaller annual rates into larger total returns.

Use both. Absolute profit (₹50,000) tells you the rupee impact; ROI % tells you efficiency. A ₹50K profit on ₹1L invested (50% ROI) is far better than ₹50K profit on ₹10L invested (5% ROI), even though the rupees are identical.