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Bookmark or Share- Return on Investment | ROI Formula & Meaning | InvestingAnswersWhat Is ROI? ROI (or return on investment) is a key financial ratio that measures the gain/loss from an investment in relation to the initial investment. Due to its flexibility and simplicity, ROI is one of the most frequently used profitability metrics. It's extremely useful to gauge the efficiency and profitability of investments.
- Return on Investment (ROI) | Formula + Calculator - Wall Street PrepROI stands for “Return on Investment” and measures the profitability of an investment relative to its cost. ROI is a method for businesses and investors to determine the efficiency and effectiveness of their capital allocation and investment strategy.
- ROI Formula (Return on Investment) - Corporate Finance InstituteReturn on investment (ROI) is a financial ratio used to calculate the benefit an investor will receive in relation to their investment cost. It is most commonly measured as net income divided by the original capital cost of the investment. The higher the ratio, the greater the benefit earned.
- Return on Investment (ROI): Definition, Equation, How to Calculate ItReturn on investment (ROI) is a financial ratio that's used to measure the profitability of an investment relative to its costs, expressed as a...
- Return on Investment (ROI) - Corporate Finance InstituteROI measures the return of an investment relative to the cost of the investment. The Return on Investment (ROI) formula: Where “Gain from Investment” refers to the amount of profit generated from the sale of the investment, or the increase in value of the investment regardless of whether it is sold or not.
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