Return on Investment - What is ROI and how is it calculated?

Q: What is ROI and how is it calculated?

ROI is calculated by subtracting the initial value of the investment from the final value of the investment (which equals the net return), then dividing this new number (the net return) by the cost of the investment, and, finally, multiplying it by 100.

Answer

One way to determine return on investment (ROI) is to deduct the investment's original value from its end value (the net return). Then, divide this new figure by the investment's cost. Lastly, multiply the result by 100.

Return on Investment - What is ROI and how is it calculated?

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