What is the formula to calculate return on investment?

By Forinfos - 16/09/2025 - 0 comments

The formula to calculate return on investment is ROI = (gain from investment - cost of investment) / cost of investment. The subsequent result is expressed as a ratio or a percentage.

The ROI formula is used to evaluate the efficiency of an investment. The ROI metric is popular among investors and businesspeople, largely because of its simplicity and versatility. A negative ROI or the presence of alternative investments with higher ROIs indicates that the investment should not be undertaken. The ROI formula can be applied to virtually any form of investment, from individual investments to projects within a corporation.

Login to Comment

Comments

Be the first to write a comment for this article.

Related Articles

What is a state tax return calculator? What is the formula for calculating momentum? What is the formula for calculating the actual mechanical advantage? How do you calculate inventory turnover? What is the formula for calculating earned value? What is the formula used to calculate displacement? What is the formula to calculate force? What is the formula for calculating acreage? What is the formula to calculate BMI? What is the formula to calculate GPM?

Trending Articles

Did Goldie Hawn and Kurt Russell split up? How do you draw a cross? Did John Denver get divorced? How long was Anne Frank in hiding? How do you legally watch "Gold Rush" online? Is it legal to download full movies online from torrent sites? How do you upload a file to SoundCloud? How is pencil lead hardness graded? How do you draw an airplane? How do you find out if Netflix is having problems?