Measure your ROI and annualised return

Name: Salary Calculator
Brand: Superworks
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Enter what you invested, what it's worth now, and how long you held it. See total ROI percentage and annualised CAGR side by side.

Total ROI CAGR Included Live Results

Investment details

Works for stocks, real estate, business, or any cash flow with a defined start and end.

Amount invested

Final value

Holding period (years)

Total ROI

+50.00%

Net gain over the holding period

Net profit / loss₹50,000

Annualised (CAGR)+14.47% p.a.

Invested₹1,00,000

Final value₹1,50,000

Period3 years

How ROI is calculated

ROI tells you the total return as a percentage of what you invested. CAGR normalises it to a per-year rate so you can compare across different holding periods.

01
Subtract
Final Value − Amount Invested = Net Profit (or loss).
```
profit = final − invested
// e.g. 150000 − 100000 = 50000
```

Divide

Net Profit ÷ Amount Invested × 100 = Total ROI %.

roi = (profit ÷ invested) × 100
// 50000 / 100000 × 100 = 50%

03
Annualise
CAGR = ((Final ÷ Invested)^(1/years) − 1) × 100. Compares investments of different lengths fairly.
```
cagr = ((final ÷ invested)^(1÷years) − 1) × 100
```

FormulaROI % = ((Final − Invested) ÷ Invested) × 100CAGR % = ((Final ÷ Invested)^(1/years) − 1) × 100

Why we use this formula by default.
Indian payroll convention, statutory references, and the SaaS tooling that runs payroll all converge on this approach. Below are the authoritative sources we cross-checked.

Theory

Damodaran NYU Stern

Aswath Damodaran's canonical investment valuation lectures.

Definition

Investopedia ROI

Standard ROI definition and CAGR distinction.

Methodology

Corporate Finance Institute

CFI ROI / CAGR calculation methodology reference.

Strategic

HBR Investment Analysis

Harvard Business Review strategic ROI articles and case studies.

Tool

Excel / Google Sheets

Standard ROI and CAGR functions used in financial modeling.

Insights

McKinsey Capital Allocation

McKinsey research on disciplined corporate capital allocation.

FAQs about ROI

What is a good ROI?

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 vs CAGR — what's the difference?

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.

Does ROI include taxes and fees?

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.

Can ROI be negative?

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.

How is ROI different from IRR?

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.

Should I always pick the highest ROI?

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.

Why does CAGR look lower than ROI?

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.

Should I use ROI or absolute profit?

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.

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Measure your ROI and annualised return

Investment details

How ROI is calculated

Subtract

Divide

Annualise

Damodaran NYU Stern

Investopedia ROI

Corporate Finance Institute

HBR Investment Analysis

Excel / Google Sheets

McKinsey Capital Allocation

FAQs about ROI

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