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ROI (Return on Investment)

Return on Investment (ROI) is a financial metric used to evaluate the profitability of an investment. It measures the gain or loss generated relative to the amount invested. Calculated as a percentage, ROI is determined by taking the net profit (the total return minus the initial investment) and dividing it by the initial investment cost. A positive ROI indicates a profitable investment, while a negative ROI signals a loss. This concept helps individuals and businesses make informed decisions about where to allocate resources for the best financial returns.

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    Return on Investment (ROI) is a financial metric used to evaluate the efficiency or profitability of an investment. It is calculated by taking the gain from the investment, subtracting the cost of the investment, and then dividing that by the cost. The result is often expressed as a percentage. A higher ROI indicates a more profitable investment. For example, if you invest $100 and earn $150, your ROI would be 50% (($150 gain - $100 cost) / $100 cost). ROI helps investors compare different investment opportunities and make informed financial decisions.