How is IPO return on investment calculated?

Absolute return = (sale price − issue price) ÷ issue price × 100. Annualized return = ((sale price ÷ issue price) ^ (365 ÷ holding days) − 1) × 100, the standard CAGR-style compounding formula.

Why is my annualized return so much higher than my absolute return?

Annualizing extrapolates a short-period gain as if it repeated every year, which inflates short holds dramatically — a 15% gain in 10 days is a very different (and far higher) annualized rate than the same 15% gain over 10 months.

Is annualized return meaningful for a listing-day sale?

It's mathematically correct but not practically meaningful — a single-day or few-day holding period annualizes to an extreme number that doesn't represent a sustainable or repeatable rate. Use it mainly to compare holds of similar or longer duration.

Does this calculator include tax or transaction charges?

No — this is a pure investment-return calculation. For tax on the gain, use the capital gains tax calculator; for STT/brokerage/DP charges, use the net proceeds or listing day profit/loss calculators.

What holding period should I use if I haven't sold yet?

Use the number of days from your allotment date to today (or to whatever date you're evaluating), and the current market price as the sale price, to see an unrealized return.

IPO Return / ROI Calculator

See your IPO investment's return both as a simple absolute percentage and as an annualized (CAGR-style) rate, so you can fairly compare a short listing-day flip against a multi-year hold.

Total Gain / Loss

₹4,500

Absolute return: +30.00%

Annualized Return

+70.24%

Holding Period

180 days

How the IPO Return / ROI Calculator works

Absolute return is simply (sale price − issue price) ÷ issue price. But a 30% gain in 2 days and a 30% gain over 2 years are very different outcomes — so this calculator also computes an annualized return using the standard compounding formula: (sale price ÷ issue price)^(365 ÷ holding days) − 1, the same method used for CAGR.

Annualizing a very short holding period (a listing-day sale, for example) produces a mathematically correct but practically extreme number — a 20% gain in 2 days annualizes to a rate that will look implausibly large. Treat the annualized figure as a comparison tool for holds of meaningfully different lengths, not as a realistic forecast of a repeatable annual rate. This figure is not tax — see the capital gains tax calculator for STCG/LTCG on the same sale.

Disclaimer: This calculator is for educational purposes only and does not constitute investment advice. Always read the Red Herring Prospectus and verify current rates before applying for any IPO.

IPO Return / ROI Calculator

How the IPO Return / ROI Calculator works

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