Free calculator · Any small business
Enter what you invest, such as new equipment, a renovation or software, and the extra profit it brings each month. See the return over the period you choose and how long it takes to pay for itself.
Total gain = extra profit per month × months.
ROI = (total gain − amount invested) ÷ amount invested × 100.
Payback period = amount invested ÷ extra profit per month.
You spend ₹1,20,000 and it adds ₹15,000 of profit a month. Over 12 months that is ₹1,80,000, a net gain of ₹60,000 and an ROI of 50%. It pays for itself in 8 months.
Only the extra profit the investment causes, after its own running costs. If it also saves time, put a fair value on the hours saved, or leave them out to stay conservative.
Compare it with what else you could do with the money and with the risk involved. A short payback period matters most when cash is tight.
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