Rate of Return Calculator India

FAQs

How do you calculate ROI in India?

ROI (Return on Investment) in India, as elsewhere, is calculated by dividing the net profit from an investment by the initial investment cost and expressing the result as a percentage.

How do you calculate rate of return?

Rate of return is calculated by dividing the gain or loss generated from an investment by the initial cost of the investment and expressing the result as a percentage.

What does 10% XIRR mean?

10% XIRR means that the Internal Rate of Return (IRR) for the investment is approximately 10%. XIRR stands for Extended Internal Rate of Return, a method used to calculate returns for investments with irregular cash flows.

What if I invest 1000 Rs in SIP for 20 years?

Assuming an average return rate of around 10%, investing 1000 Rs in SIP (Systematic Investment Plan) for 20 years could potentially grow to around 10 lakhs Rs.

What is a good ROI in India?

A good ROI in India can vary depending on the type of investment and prevailing economic conditions. However, a commonly cited benchmark is a return of 15% or higher.

What is India’s average ROI?

The average ROI in India varies across different investment options and sectors. It’s difficult to provide a precise figure without specific context, but historically, returns have ranged from single digits to upwards of 20-30% in certain sectors during favorable economic conditions.

What is the difference between IRR and ROI?

While both IRR and ROI are measures of investment performance, they differ in calculation and interpretation. ROI calculates the return as a percentage of the initial investment, while IRR is the discount rate that makes the net present value (NPV) of all cash flows from an investment equal to zero.

What is a good ROI for a business?

A good ROI for a business varies by industry, but generally, a ROI that exceeds the cost of capital or industry averages could be considered good.

How to calculate ROI Excel?

You can calculate ROI in Excel by subtracting the initial investment cost from the final value of the investment, then dividing by the initial investment cost, and multiplying by 100 to get the percentage.

What does 20% XIRR mean?

20% XIRR indicates that the Internal Rate of Return for the investment is approximately 20%.

Is XIRR 20 good?

Yes, a 20% XIRR would generally be considered a good return on investment.

Is XIRR better than CAGR?

XIRR and CAGR (Compound Annual Growth Rate) are different measures used for different purposes. XIRR takes into account irregular cash flows, while CAGR represents the constant rate of return over a specific period of time.

How to get 50 lakhs in 5 years with SIP?

To achieve 50 lakhs in 5 years with SIP, you would need to invest a certain amount monthly with an expected annual return. Assuming a 12% annual return, you would need to invest around 65,000 Rs per month.

How to make 1 crore in 3 years?

To make 1 crore in 3 years, you would need a substantial investment with a high rate of return. Assuming a 20% annual return, you would need to invest around 40 lakhs initially.

What if I invest $2,000 a month in SIP for 5 years?

The outcome would depend on the rate of return. Assuming an average annual return of 8%, you could potentially accumulate around $150,000 in 5 years.

What is the safest investment with highest return?

Government bonds and fixed deposits are generally considered safe investments, but they often offer lower returns compared to riskier investments like stocks or mutual funds.

How to multiply money in India?

Investing in diverse assets, managing risks, and staying informed about market trends can help multiply money in India over time.

Is 30% ROI possible?

Yes, a 30% ROI is possible, although it typically involves higher risk investments or exceptional market conditions.

How much income is good to live in India?

The amount of income needed to live comfortably in India varies greatly depending on location, lifestyle, family size, and other factors. A middle-class lifestyle might require an income of around 10-20 lakhs per annum.

Which business has the highest ROI in India?

Business sectors such as technology, pharmaceuticals, and e-commerce have historically demonstrated high ROI potential in India.

How much money do you need to be 1% in India?

To be in the top 1% income bracket in India, you would generally need an annual income of several lakhs or more.

Is 7% a good IRR?

A 7% IRR might be considered good for certain low-risk investments, but it may not be satisfactory for higher risk ventures.

Should I use ROI or IRR?

Both ROI and IRR have their uses. ROI is simpler and easier to understand, while IRR accounts for the time value of money and is more comprehensive for evaluating the profitability of investments.

Is NPV the same as ROI?

No, NPV (Net Present Value) measures the present value of all cash inflows and outflows of a project, while ROI measures the profitability of an investment relative to its cost.

What is a realistic ROI?

A realistic ROI varies depending on the type of investment, risk level, and economic conditions. Generally, a realistic ROI could range from 5% to 15% for most investments.

Is 50% a good ROI?

A 50% ROI would typically be considered excellent, although it may involve high-risk investments.

Is a 100% ROI good?

A 100% ROI would generally be considered outstanding, although it may also indicate a high level of risk or a very successful investment.

Where is ROI the highest?

ROI can vary greatly depending on the type of investment and prevailing economic conditions. Historically, emerging markets and high-growth sectors have often offered higher ROI potential.

Can ROI be negative?

Yes, ROI can be negative if the investment generates a loss.

Is ROI always a percentage?

Yes, ROI is always expressed as a percentage, representing the return on investment relative to the initial investment cost.