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Return on investment (ROI) is a financial ratio used to calculate the benefit an investor will receive in relation to their investment cost. It is most commonly measured as net income divided by the original capital cost of the investment. The higher the ratio, the greater the benefit earned.
Return on investment (ROI) measures how well an investment is performing. Find out how to calculate and interpret the ROI of your current portfolio or a potential investment.
Formula of Return on Investment (ROI) ROI is expressed as a percentage or ratio and is calculated as follows: In addition, the appreciation of a stock and depreciation of material assets are taken into consideration when calculating ROI.
ROI is expressed as a percentage and is calculated by dividing an investment's net profit (or loss) by its initial cost or outlay. ROI can be used to make...
ROI Formula. You can calculate ROI by dividing net profit (current value of investment - cost of investment) by the cost of investment. The simplest ROI formula is as follows: Are There Different Methods of Calculating Return on Investment? While the basic ROI formula can be used in a number of situations, variations can be used for other ...
The Return on Investment (ROI) formula: Where “Gain from Investment” refers to the amount of profit generated from the sale of the investment or the increase in value of the investment regardless of whether it is sold or not.
Meeting your investment goal is dependent on many factors. Use our ROI calculator to determine your return considering time horizon, taxes and invested capital.