Complete Guide to ROI Calculator for Indian Stock Investors
What is ROI (Return on Investment)?
ROI measures profit relative to cost: ROI = (Net Profit ÷ Cost of Investment) × 100. If you invested ₹50,000 in a BSE small-cap and netted ₹15,000 after all costs, ROI is 30%. It is the most intuitive performance metric — understood by first-time investors comparing a stock trade, FD and gold loan business side by side.
ROI ignores time — 30% in two months beats 30% in five years in reality but not on raw ROI number. Master Calc's ROI calculator India shows simple and annualised ROI, optionally net of brokerage, STT and estimated capital gains tax.
Gross ROI vs net ROI after Indian costs
Gross ROI uses buy and sell prices only. Net ROI subtracts brokerage, STT (0.1% on delivery sell for many equity trades), exchange charges, GST on brokerage and tax on gains. A flashy 25% gross delivery trade under 12 months may land near 18–20% net after 20% STCG — still good, but honest planning needs net figure.
Use Capital Gains Calculator for tax component and feed result into ROI. Long-term holds above 12 months enjoy LTCG exemption band — net ROI improves versus short flip on same price move.
ROI vs CAGR vs XIRR — when to use each
ROI: single trade or total return without time adjustment. CAGR: annualised growth between start and end over years — CAGR Calculator for lumpsum buy-and-hold. XIRR: irregular dated flows — XIRR Calculator for portfolio with multiple purchases.
Office bragging rights often cite ROI on best stock while hiding losers — portfolio-level ROI on total capital deployed tells truth. Win rate times average ROI per trade drives trader expectancy.
Worked example: delivery trade on NSE
- Buy 200 shares @ ₹450 = ₹90,000
- Brokerage buy + sell ≈ ₹80
- Sell @ ₹540 = ₹1,08,000
- STT + charges ≈ ₹150
- Gross profit ₹18,000 → gross ROI 20%
- STCG 20% on ₹17,770 taxable gain ≈ ₹3,554 tax
- Net profit ~₹14,216 → net ROI ~15.8%
Calculator automates arithmetic — adjust inputs for your broker's exact fee schedule (Zerodha flat ₹20/order vs percentage plans).
Annualised ROI for fair comparison
Annualised ROI ≈ (1 + ROI)^(1/years) − 1 for single round trip. 40% ROI in 6 months annualises to roughly 96% — unsustainable if repeated. Compare 6-month stock ROI annualised with 3-year mutual fund CAGR on same capital to choose between active trade and passive hold.
FD at 7% for 1 year is 7% ROI — beating FD requires net ROI above 7% after tax for same risk bucket. Equity risk premium demands higher hurdle.
ROI including dividend income
Total return ROI should add cash dividends to sale proceeds (or mark-to-market value plus dividends received). ITC holder with 4% yield over 4 years adds meaningful return beyond price appreciation — omitting dividends understates ROI on income stocks.
Track yield via Dividend Yield Calculator; reinvested dividends increase share count — include in ending value or add as separate cash return depending on methodology consistency.
ROI for traders vs investors
Intraday traders measure ROI per day or week on deployed margin — many small ROIs compound if win rate high; one bad day erases week. Delivery investors measure per position or annual portfolio ROI on total equity capital.
Pair trader ROI with Risk Reward Ratio and Position Size Calculator — high ROI on tiny risk capital misleading if position was reckless fraction of net worth.
Negative ROI and recovery math
−20% ROI requires +25% on remaining capital to break even — asymmetry famous in investing literature. Average down without thesis improves average price but increases capital at risk — update Stock Average Calculator and question position size limits.
Cutting losers at defined ROI stop preserves capital for next trade — behavioural challenge for Indian investors attached to stock narratives on social media.
Comparing ROI across asset classes in India
Same ₹5 lakh in metro property, gold SGB, equity SIP and crypto over 5 years yields different ROI distributions and tax outcomes. Crypto 30% flat tax; equity LTCG benefits; property has stamp duty and illiquidity — ROI alone insufficient without risk and liquidity context.
Salaried core portfolio: SIP Calculator forward projection; satellite stock picks tracked with ROI per idea. Aggregate via XIRR for household truth.
Step-by-step: using ROI Calculator
- Enter total purchase cost including brokerage.
- Enter net sale proceeds or current market value.
- Add optional tax and fee fields for net ROI.
- Enter holding period months for annualised figure.
- Compare net ROI with benchmark and FD hurdle.
- Log per-trade ROI in journal for strategy review.
Common ROI mistakes
- Quoting gross ROI while ignoring tax and STT.
- Comparing 3-month stock ROI with 10-year PPF without annualising.
- Excluding dividends from long-term hold ROI.
- Cherry-picking best trade ROI as portfolio performance.
- Using ROI on leveraged F&O without noting margin denominator.
Browse Stocks & Trading calculators, Income Tax Calculator, Portfolio Rebalancing Calculator.
Disclaimer
ROI calculations are illustrative based on user inputs. Past returns do not guarantee future performance. Equity, crypto and trading involve risk of capital loss. Tax estimates per current law — verify with chartered accountant. Educational content only, not SEBI-registered investment advice.