
ROI
ROI, or Return on Investment, measures the profitability of an investment. It compares the amount of money gained or lost from the investment to the initial amount invested. Essentially, ROI shows how effectively your money is working for you. A positive ROI means you've made a profit, while a negative ROI indicates a loss. It's expressed as a percentage, helping you evaluate different investments or projects to determine which offers the best potential return relative to the risk and cost involved. This metric is useful for making informed financial decisions and assessing the success of your investments over time.