Return on Investment - What does return on investment mean?

Q: What does return on investment mean?

Return on Investment, often referred to as ROI, is a ratio used to calculate the profitability (gain or loss) of an investment as a percentage of the cost. Return on investment is expressed as a percentage and is often used to compare the profitability of different investments and investment types.

Answer

You can figure out how profitable an investment was by dividing its cost by its return on investment, or ROI for short. One common metric for comparing the efficacy of various investment opportunities is return on investment (ROI), typically presented as a percentage.

Return on Investment - What does return on investment mean?

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