ROI Calculator (Return on Investment)
Calculate both absolute ROI and annualized ROI (CAGR). Annualized ROI is the only correct way to compare investments of different durations.
Investment Report
EQUIS Take (Asli Sach)
Business ya real estate mein ROI nikalte waqt hamesha time duration dekho. 5 saal mein 100% return ka matlab 20% nahi,
The Math Behind ROI Calculator (Return on Investment)
Understanding the true mechanics of this instrument helps you make optimal decisions with your money.
1. Absolute vs. Annualized ROI
Absolute ROI tells you total profit as a %. Annualized ROI (CAGR) tells you per-year equivalent rate. Always use annualized ROI to compare investments across different time periods.
2. Time Value Is Everything
A 100% absolute ROI in 10 years (7.2% CAGR) is inferior to a 50% ROI in 3 years (14.5% CAGR). A shorter, higher-ROI investment often outperforms a longer one when compared on an annualized basis.
3. Real ROI = ROI Minus Inflation
Your true purchasing power growth is: Investment ROI% - Inflation%. An investment earning 7% when inflation is 6% only grows your real wealth by 1% annually. Beat inflation decisively or your wealth erodes.