Franchise ROI Calculator
Four numbers in, full picture out — payback period, annual ROI and your 5-year position for any franchise in India.
Your Numbers
Setup cost + franchise fee + security deposit
What's left after rent, staff, stock and running costs
Charged by the franchisor on revenue
Your Estimated Returns
Enter your numbers to see results
Add your investment and expected monthly revenue on the left — payback period, ROI and a 5-year projection appear here instantly.
How this calculator works
Net monthly profit = monthly revenue x profit margin, minus the royalty the franchisor charges on revenue. Your payback period is the total one-time investment divided by that net monthly profit. The 5-year projection keeps revenue flat — it doesn't assume growth or decline. The margin and royalty boxes start with placeholder values, not typical figures: replace them with the brand's actual terms and the margins existing franchisees report. For a line-item view of rent, staff and operating costs, use our detailed investment calculator.
Frequently asked questions
What is a good ROI for a franchise in India?
There's no reliable Indian benchmark, so we don't quote one. ROI here means yearly profit as a percentage of your total investment, not the profit margin on sales. Compare the result with what the brand claims (shown on its listing, labelled as a claim), with what existing franchisees actually earn, and with what the same money could earn elsewhere at lower risk.
How is franchise payback period calculated?
Payback period = total one-time investment divided by net monthly profit, where net monthly profit is revenue times your operating margin, minus the royalty charged on revenue. It's the number of months until your cumulative profit equals what you put in. Operating break-even (the month the outlet stops losing money) is a different, earlier milestone.
Is royalty charged on revenue or on profit?
It depends on the brand. Many charge a percentage of sales (check whether gross or net); some charge on margin, or a fixed monthly fee. This calculator models royalty as a percentage of revenue, which is why a high royalty can make a thin-margin business lose money. Each FranchiseChuno listing shows the royalty and its base where the brand publishes it.
What costs should I include in total investment?
Include the franchise fee, GST on it, fit-out, equipment, deposits, signage, licences and opening stock. Keep a separate working-capital reserve on top, because new outlets usually take months to reach steady sales.
Disclaimer: Estimates only — actual returns vary with location, market conditions and management. Verify every brand's numbers (its franchise agreement, a written cost breakdown and calls with existing franchisees) and consult a financial advisor before investing. See our due-diligence guide.