|Overview: Return On Investment
The gain or projected gain of an investment expressed as a percentage of the investment cost.
What is Return On Investment?
John Spacey, updated on
Return on investment, or ROI, is the gain or projected gain of an investment often expressed as a percentage of the investment cost. It is a common financial metric used to compare and evaluate strategies. There are numerous ways to calculate return on investment, with the following being a common variant:return on investment = ((gain from investment – cost of investment) / cost of investment) * 100For example, if you invest $20 in an advertisement that produces $100 in net revenue the return on investment is ((100-20)/20)*100 = 400%.
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