Roi formula: The Return on Investment

ROI Formula The Return on Investment formula offers a clear path to assess an investment 's performance. It can be calculated as Return On Investment = (Net Return / Cost of Investment ) × 100 The numerator, the net return obtained by subtracting the investment cost from either gross returns or total exit proceeds, encapsulates the total profits received. In contrast, the denominator, the cost of the investment , signifies the total amount spent by the investor. Expressed as a percentage, this ... Return on Investment ( ROI ) is a measure that is used to estimate the amount of profit that can be earned or has been earned from the different types of investments. The return on investment (ROI) formula is straightforward, as the calculation simply involves dividing the net return on the investment by the investment’s corresponding cost . Learn about Return on Investment ( ROI ). Understand its definition, types, uses and calculation for informed decisions. Weigh its pros and cons.