About the Investment ROI Calculator
The Investment ROI Calculator Australia helps investors measure the return on their investments using a simple percentage formula. Whether you are evaluating shares, property, or business ventures, understanding your return on investment is essential for comparing opportunities. This tool factors in Australian tax implications including capital gains tax and franking credits.
What is the Investment ROI Calculator?
Return on investment, or ROI, measures the profitability of an investment relative to its cost. It is expressed as a percentage and calculated by dividing the net profit by the initial investment cost. For example, if you invest $50,000 in Australian shares and later sell them for $65,000, your net profit is $15,000 and your ROI is 30%. This calculator goes beyond the basic formula by incorporating Australian-specific factors such as capital gains tax discounts for assets held longer than twelve months, franking credits from dividend-paying shares, and the impact of brokerage fees. It also supports comparison across different asset classes including residential property, ETFs, managed funds, and term deposits. For property investors, the tool can factor in stamp duty, conveyancing costs, and ongoing maintenance expenses. The calculator adjusts for inflation using RBA data to show real versus nominal returns. This makes it an indispensable tool for Australian investors who want to make informed decisions and accurately assess which investments are truly delivering value after all costs and taxes.
How to Use This Calculator
- 1Enter your initial investment amount: Input the total amount you paid, including all purchase costs like brokerage, stamp duty, and legal fees.
- 2Add ongoing costs: Include management fees, maintenance expenses, interest on borrowings, and any other recurring costs associated with the investment.
- 3Enter your final sale value or current value: Input the amount you sold the investment for, or its current market value if you are measuring ongoing performance.
- 4Select the holding period: Choose whether you have held the asset for less than or more than twelve months to apply the correct CGT discount.
- 5Include income received: Add any dividends, distributions, or rental income received during the holding period for a total return calculation.
- 6Review your net ROI: The calculator shows both the dollar profit and the percentage return, adjusted for Australian tax rules.
- 7Compare multiple investments: Run different scenarios side by side to see which investment delivers the best after-tax return.
Worked Australian Example
Practical Example
Meet Angela, an investor living in Canberra, ACT. She purchased $80,000 worth of ASX-listed shares in a bank three years ago and received $6,200 in fully franked dividends over the holding period. She sells the shares today for $95,000. Using the Investment ROI Calculator Australia, Angela enters her initial investment of $80,000 plus $320 in brokerage. She adds the $6,200 dividends received and selects a holding period of more than twelve months. The calculator applies the 50% CGT discount, meaning only half of the $15,000 capital gain is taxed. After factoring in franking credits on the dividends, Angela's total net profit is approximately $20,700. The calculator shows her total ROI at 25.8% over three years, or about 8.6% per annum. Angela compares this to her term deposit returning 4.5% and confirms her share investment has outperformed.
Common Investment ROI Calculator Questions
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Use Calculator →Reviewed by
BizMetrixs Team
Australian Financial Specialists