Return on Investment (ROI) Calculator

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.

Take this further

ROI is only credible if the cost and return figures come from your books. Tawala Accounting keeps project and asset-level costing so the return you report can be traced.

Not sure which module fits? Compare every option under Tawala solutions, or find the setup for your sector under Tawala by industry.