Return on Investment (ROI) Calculator
Quick ROI calculator for Tanzanian businesses — investment, return, ROI %, payback period.
How to calculate ROI
ROI — the universal investment metric
Return on Investment (ROI) is the percentage gain (or loss) of an investment relative to its cost. It is the single most-asked-for metric by Tanzanian banks reviewing loan applications, by investors, and by any decision-maker who needs a one-number answer to "is this worth it?"
The formula
ROI = (Return − Cost) ÷ Cost × 100
For multi-year horizons, also look at annualised ROI = (Return ÷ Cost)1/years − 1, and the payback period — the time it takes for cumulative net cash inflow to equal the original investment.
Benchmarks in Tanzania
- Bank deposit: ~7–9% annually — the floor for any productive investment.
- Treasury bills: ~10–13%.
- Real estate (rental yield): 7–11% in Dar; 4–8% upcountry.
- Healthy SME: 25%+ ROI annually.
- Venture-grade ROI: 30%+ annually, payback under 3 years.
What ROI does NOT capture
ROI is silent on risk and timing. A 50% ROI over 5 years sounds great until you compare it to a deposit at 8% × 5 = 47% — but with zero risk. Always pair ROI with payback, risk and a sensitivity check.
Companion tools: Break-even, Loan Calculator, Markup vs Margin.
Frequently asked questions
What is ROI?
Is ROI the same as ROAS?
What is a good ROI in Tanzania?
Does the tool handle multi-year ROI?
What is payback period?
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