How to calculate ROI?



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If you took $20 million as debt to fund a $200 million project. Assuming 10% interest on the debt and returns of $500 million in 5 years. What is your ROI?

In this question Debt is 20 million and interest 10% so after 5 year I have to return 30 million....if expected return after 5 years is 500 million then left over is 470 million and my investment is 180 million so ROI = 470/180=261% is it correct.

Please help me for the same

1 Answer(s)


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Yes Tuhin. 261% is the correct answer and your calculations are right.