What is return on investment?
Return on Investment or shortly ROI is a measurement used to determine the profitability of your investments. It provides you with valuable insight on money efficiency. Return on Investment expresses the ratio of returns to investments. This can help you distinguish between different offers and find the most profitable one.
Frequently Asked Questions
How can I calculate return on investment?
A common method of calculating ROI is to divide the net income by the investment cost and mutiply that times 100.
What is a good return on investment?
It depends on each individual's expectations. Some people might consider any positive return on investment to be good, while others might only consider returns of 10% or more to be good.
What is the ROI formula?
The ROI formula is ROI = (net profit / cost of investment) x 100.