Home > Income Tax > Help Center > Return on Investment Calculator Last Updated: Jan 31st 2024
'ROI' stands for "Return on Investment". It is utilized in the assessment of an investment's profitability. EZTax's Return on Investment (ROI) Calculator facilitates the computation of ROI and annual ROI.
ROI means Return on Investment. It is used to measure the profitability of an investment. ROI is used to measure the performance of various assets like properties, shares, Mutual Funds, crypto etc
A. Total ROI is calculated based on the below formula
Gain = (Total Returned Amount - Invested Amount)
ROI = (Gain / Invested Amount) * 100
B. Annual ROI is calculated based on the below formula
Annualized ROI = [(Total Returned Amount / Invested Amount) ^ (1/Holding Period)] - 1
Annualized ROI means return on investment as an annual average over a given period of time. It helps the investors in comparing their investments over the time period
EZTax ROI calculator is very easy to use and its interface is user friendly. You just need to enter the invested amount, Returned amount and duration. It automatically calculates the ROI and Annual ROI
Disclaimer: This article provides an overview and general guidance, not exhaustive for brevity. Please refer Income Tax Act, GST Act, Companies Act and other tax compliance acts, Rules, and Notifications for details.