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Finance & Investment · Returns

Project ROI Calculator

Measure the ROI of a business project — new equipment, a marketing campaign, software, a solar installation — from what it cost and what it brought in, including running costs, plus the annualised return over the project's life.

A ready-made version of the Absolute Return & ROI Calculator.Also listed inBusiness

Your inputs

Quick start — try a typical case

₹ 5 lakh

₹ 6.5 lakh

Extra profit or savings the project produced, plus anything it can be sold for.

₹ 50 thousand

years

Enter it to also see the annualised return. Leave 0 to skip.

Your result Live

Absolute Return (ROI)

18.18%

Profit of ₹1,00,000 on ₹5,50,000

Profit
₹1,00,000
Total Received (value + income)
₹6,50,000
Total Put In (invested + costs)
₹5,50,000
Annualised Return (over 2 years)
8.71%
Value Multiple
1.18×
  • Your money back · 85%₹5,50,000
  • Profit · 15%₹1,00,000

How this is calculated

ROI = (Value + Income − Invested − Costs) ÷ (Invested + Costs) · Annualised = (Value + Income) ÷ (Invested + Costs))^(1/t) − 1

Income
Dividends, interest or rent received while holding
Costs
Brokerage, fees and other charges
t
Holding period in years

Absolute return answers 'how much did my money grow in total?'. It ignores how long that took, so a 45 % return over 3 years and over 10 years look the same — enter the holding period to see the annualised (CAGR) return, which makes them comparable.

Assumptions & sources

  • Income is added at face value at the end; it is not assumed to have been reinvested.
  • All money was invested at the start. For several purchases or withdrawals at different times, use the XIRR Calculator.
  • Taxes are not deducted unless you include them in costs.
  1. 1Investments (Bodie, Kane & Marcus), chapters on returns, compounding and the time value of money — McGraw-Hill
  2. 2Investor education material — SEBI — Securities and Exchange Board of India

Calculator ID FIN-RET-ABS-001/project · version 1.0.0

Common questions

What counts as the benefit?

The extra profit or cost savings the project produced (not revenue), plus any value it still has if sold. Compare against what would have happened without the project.

ROI or IRR for projects?

ROI is quick and easy to communicate. For projects whose cash flows arrive over several years, IRR and NPV account for timing and the cost of capital — use the IRR & NPV Calculator.