What Is Return on Investment (ROI)?
Return on investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments. ROI tries to directly measure the amount of return on a particular investment, relative to the investment’s cost.
To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment. The result is expressed as a percentage or a ratio.
Return on Investment (ROI) Calculator
How do you calculate return on investment (ROI)?
ROI is the amount of profit earned on an investment divided by the cost of that investment.
ROI is a quick way to estimate how successful an investment might be. But it has some limitations. It does not take into account the time value of money, and it can be difficult to compare the ROIs of different investments, depending on how long they take to generate a profit.