ROI Calculator Australia 2025-26
Evaluating an opportunity? See what it actually returns.
Calculate total return, annualised return (CAGR), dividend income, management fee impact, inflation-adjusted gains, capital gains tax, and benchmark comparison. Uses Australian tax rates. All calculations in your browser — your data never leaves your device.
ROI = (Net Profit ÷ Cost) × 100. Use annualised ROI (CAGR) to compare across time periods.
Select the question that matches where you are right now.
Your result shows the projected growth or return based on the rate, contribution, and time period you entered — using standard compound or simple interest formulas.
Use this to set savings targets, compare investment options, or understand the impact of starting earlier. Adjust the rate and timeframe to model optimistic and conservative scenarios.
Not a guaranteed return. Actual investment outcomes depend on market conditions, fees, taxes, and timing that cannot be predicted with certainty.
Uses standard financial formulas with the inputs you provided. All calculations run in your browser — no data is sent to any server.
Savings and investment results are dominated by three factors: the rate of return, the time horizon, and regular contributions. Compounding amplifies all three over time.
Returns on returns accelerate growth over time. The difference between 5% and 7% over 20 years is much larger than the 2% gap suggests — compounding is non-linear.
Adding even small regular amounts dramatically increases the final balance. $100/week invested at 7% for 20 years grows to over $110,000 in contributions and $110,000+ in returns.
Starting 5 years earlier often produces a larger final balance than doubling your contribution rate. Time is the most powerful variable in savings calculations.
To improve your savings outcome, focus on starting earlier, increasing contributions, and minimising fees and tax drag on returns.
Starting with a small amount today and increasing over time beats waiting to start with a larger amount. Time in the market matters more than timing the market.
A 1% annual fee on a $100k balance costs $1,000/year and compounds against you. Compare fee structures across savings and investment products.
Super, offset accounts, and tax-free thresholds reduce the drag of tax on your returns — letting more of the growth compound for you.
Savings decisions connect to investment, tax, and retirement planning. Use these calculators to model the broader picture.
Work backwards from a target amount to see how much you need to save each month.
Savings goal →Model how an initial investment grows with regular contributions over different time periods.
Compound interest →See what your future balance is worth in today's dollars after adjusting for inflation.
Inflation calculator →How Return on Investment is calculated
Basic ROI formula
ROI = (Net Profit ÷ Cost of Investment) × 100. Net Profit = Final Value − Initial Investment − All Costs. Example: buy $500,000 property, sell for $650,000 after $20,000 in costs: ROI = ($130,000 ÷ $500,000) × 100 = 26%.
| Investment | Cost | Return | Net profit | ROI |
|---|---|---|---|---|
| Property | $500,000 | $650,000 | $130,000 (after costs) | 26% |
| Shares | $50,000 | $65,000 | $14,000 (after brokerage) | 28% |
| Business | $100,000 | $150,000 | $45,000 (after costs) | 45% |
| Term deposit | $50,000 | $52,500 | $2,250 (after tax est.) | 4.5% |
ROI examples across asset classes — Australia 2025
| Asset class | Typical annual return | 10yr total ROI (approx) | Notes |
|---|---|---|---|
| ASX 200 index | 8–10% p.a. | 117–159% | Dividends + capital growth |
| Australian residential property (capital cities) | 6–9% p.a. (total) | 79–137% | Rent + capital growth, before costs |
| High-interest savings account | 4.5–5.5% p.a. | 55–71% | Risk-free, fully liquid |
| Term deposit | 4.5–5.0% p.a. | 55–63% | Locked in, risk-free |
| Australian bonds | 3.5–5.0% p.a. | 41–63% | Lower risk than equities |
Annualised ROI vs simple ROI — which to use
Simple ROI
Simple ROI = (Profit ÷ Cost) × 100. A 30% ROI over 4 years. Simple to calculate but does not account for time — it treats a 30% return over 1 year the same as over 10 years.
Annualised ROI (CAGR)
CAGR = (Final Value ÷ Initial Value)^(1/years) − 1. A $500,000 investment growing to $650,000 over 4 years: CAGR = (650,000÷500,000)^(1/4) − 1 = 1.3^0.25 − 1 = 6.8% per year.
| Simple ROI | Hold period | CAGR (annualised) |
|---|---|---|
| 30% | 2 years | 14.0% |
| 30% | 4 years | 6.8% |
| 50% | 5 years | 8.4% |
| 100% | 10 years | 7.2% |
| 100% | 7 years | 10.4% |
Real ROI — adjusting for inflation
Why inflation matters
A 7% nominal return during 3% inflation is a real return of approximately 3.9%. Over 20 years, this difference is substantial.
| Nominal return | Inflation | Real return | $100k after 20yr (real) |
|---|---|---|---|
| 5% | 3% | 1.94% | $146,000 |
| 7% | 3% | 3.88% | $214,000 |
| 9% | 3% | 5.83% | $310,000 |
| 9% | 5% | 3.81% | $211,000 |
Total return on investment property
Components of property ROI
Total property ROI = Rental yield (income return) + Capital growth (price appreciation) − All costs (mortgage interest, management fees, repairs, rates, insurance).
Worked example
$700,000 property. Rental income: $28,000/yr (4% yield). Capital growth: $49,000/yr (7%). Gross annual return: $77,000. Less costs (management, repairs, rates): $12,000. Net annual return: $65,000. Net ROI: 9.3% on purchase price.
Leverage amplifies ROI
With a 20% deposit ($140,000), a 9.3% return on $700,000 = $65,000 return on $140,000 equity = 46% ROI on capital invested. This is the leverage effect of property investment.
❓ Frequently asked Frequently asked questions
What is ROI?
ROI (Return on Investment) = (Net Profit ÷ Cost of Investment) × 100. It measures the efficiency of an investment as a percentage of the original cost. Net profit is the final value minus the original cost minus all associated costs.
What is the difference between ROI and CAGR?
ROI measures total percentage return without regard to time period. CAGR (Compound Annual Growth Rate) shows the equivalent annual return that would produce the same total ROI over the holding period. CAGR is more useful for comparing investments held for different time periods.
What is a good ROI in Australia?
Benchmark returns: high-interest savings accounts 4.5–5.5%, diversified shares ETF (long term) 8–10%, investment property (total return) 6–9%. A 'good' ROI depends on risk — higher returns require accepting higher volatility or less liquidity.
Does ROI account for tax?
Standard ROI calculations use pre-tax figures. For after-tax ROI, deduct capital gains tax and income tax from the net profit before dividing by the investment cost. CGT at 50% discount (assets held 12+ months) and your marginal rate significantly affect after-tax ROI.
How does leverage affect ROI?
Borrowing to invest amplifies both gains and losses. A $700,000 property purchased with $140,000 deposit (20%) and $560,000 mortgage: a 10% capital gain ($70,000) on the total property = 50% ROI on the $140,000 cash invested. If the property falls 10%, the loss is also 50% of invested capital.
Where these figures come from
Savings and interest figures on this page are drawn from the Reserve Bank of Australia (cash rate and published deposit averages), APRA (the deposit-taker regulator), and ASIC MoneySmart (consumer guidance).
- RBA cash rate — RBA — Cash Rate.
- Deposit interest-rate data — RBA — Retail Deposit and Investment Rates (F4).
- Financial Claims Scheme (deposit guarantee up to $250k) — APRA — Financial Claims Scheme.
- Compound interest & savings strategy — ASIC MoneySmart — Saving.
- Inflation & CPI — ABS — Consumer Price Index.
Last checked: April 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.