What is ROI and how do you calculate it?

Question

Accepted Answer

ROI stands for Return on Investment. It is a measure of the profitability of an investment.

ROI is calculated by dividing the net profit by the cost of the investment.
Net profit is the total revenue minus the total expenses.
ROI can be expressed as a percentage or a ratio.
For example, if the cost of investment is $100 and the net profit is $20, then the ROI is 20%.
ROI is an important metric for businesses to evaluate the success of their investments.

Accepted Answer

There are multiple methods for calculating ROI. The most common is net income divided by the total cost of the investment, or ROI = Net income / Cost of investment x 100.

Accepted Answer

ROI is Return of Investment Net profit*100/Investment

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What is ROI and how do you calculate it?

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