Calculating ROI (Return on Investment) measures how profitable an investment is by comparing its gains to its costs. This evaluation is essential for assessing the effectiveness of business investments and guiding future financial decisions.
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How to Calculate ROI?
To calculate ROI (Return on Investment), subtract the initial investment from the final investment value, divide by the initial investment, and multiply by 100 to get a percentage. For example, with an initial investment of $10,000 and a return of $15,000, the ROI would be (($15,000 - $10,000) / $10,000) * 100 = 50%.
ROI Calculation
ROI formula
ROI (Return on Investment) = ((Final Value of Investment - Initial Investment) / Initial Investment) x 100