Understanding ROI Calculator
Return on Investment (ROI) and CAGR help you judge whether an investment actually performed well after adjusting for time. Absolute gain alone can be misleading for multi-year holdings.
How this calculator works
Enter initial investment, final value, holding period, and any additional money invested along the way. The calculator shows absolute gain/loss, total ROI, and annualised CAGR.
Example
₹1 lakh growing to ₹1.8 lakh in 5 years is a strong absolute gain; CAGR tells you the smoothed yearly growth rate for fair comparison with other options.
Practical tips
- Compare CAGR with inflation to see real returns.
- Include all costs (exit loads, taxes) for a realistic picture.
- Do not judge equity funds on less than 3–5 years typically.
Limitations
CAGR assumes smooth growth and does not show interim volatility.
Need help applying these numbers to your situation? Request a free consultation with Smart Wealth Hub in Ahmedabad, or explore our financial services.