Understanding Your Investment's Performance in Bangladesh

Are your investments in the Dhaka Stock Exchange (DSE), real estate, or government Sanchayapatra (savings certificates) actually making a profit? This Investment Return (ROI) Calculator is a simple but powerful tool designed specifically for Bangladeshi investors. It helps you quickly see the efficiency of your investments in Bangladeshi Taka (BDT) and make smarter financial choices.

How to Use This ROI Calculator

To find out how well your investment has performed, follow these simple steps:

  1. Enter Initial Investment: In the first field, type the total amount you paid for the investment. For property, this includes the purchase price, registration fees, and renovation costs.
  2. Enter Final Value: In the second field, type the amount you sold the investment for, or its current market value if you still own it.
  3. Enter Duration: In the third field, enter how many years you have held the investment.
  4. Click Calculate: Press the "Calculate ROI" button to instantly see your Net Profit, Total ROI, and the all-important Annualized ROI.

Why Calculating ROI is Important for Bangladeshi Investors

Return on Investment (ROI) is a key metric that shows the profitability of an investment relative to its cost. For investors in Bangladesh, understanding ROI is crucial for several reasons:

  • Compare Different Assets: Is it better to invest in a flat in Dhaka, buy shares on the DSE, or purchase a 5-year Sanchayapatra? Calculating the annualized ROI for each allows for a fair, direct comparison.
  • Measure Success: ROI provides a clear number to measure if your investment is meeting your financial goals.
  • Make Data-Driven Decisions: Instead of relying on guesswork, ROI helps you identify which investments are performing well and which are not, allowing you to adjust your strategy.

Frequently Asked Questions (FAQ)

1. What is the difference between Total ROI and Annualized ROI?

Total ROI shows the total percentage gain on your investment from start to finish, regardless of how long it took. Annualized ROI converts this into an average annual return. Annualized ROI is much more useful for comparing different investments that were held for different periods of time.

2. Does this calculator include taxes or fees?

No. This calculator computes the gross return on your investment. It does not account for taxes (like Capital Gains Tax) or any brokerage or transaction fees. Your actual net return will be lower after these costs are deducted.

3. What is considered a "good" ROI in Bangladesh?

A "good" ROI is highly subjective and depends on the type of investment and its risk level. Generally, investors in Bangladesh might consider an annualized ROI of 10-15% from the Dhaka Stock Exchange (DSE) to be good, while a safer return of 7-9% from a Shonchoy Potro (Savings Certificate) might also be considered "good" for a low-risk investment.

Disclaimer

This is a simplified, educational tool. The calculations do not constitute financial advice. All investment decisions should be made with the help of a qualified financial professional. This calculator does not account for taxes, fees, inflation, or other real-world costs that can affect your net return.