What is ROI, How it is calculated?

Question

Accepted Answer

ROI stands for Return on Investment. It is a financial metric used to measure the profitability of an investment.

ROI is calculated by dividing the net profit from an investment by the cost of the investment and expressing it as a percentage.
The formula for ROI is: ROI = (Net Profit / Cost of Investment) * 100
Net profit is the total revenue generated from the investment minus the expenses incurred.
Cost of investment includes the initial investment amount and any additional costs or expenses.
ROI helps businesses evaluate the efficiency and profitability of their investments.
For example, if an investment of $10,000 generates a net profit of $2,000, the ROI would be (2000 / 10000) * 100 = 20%.

Accepted Answer

Return on investment. After investing some amount and conducted market acting , waiting for some period, then the business starts giving profits. Its called returns on investment. Generally it lead time should be 36 to 40 months....more that that period we have to recheck our strategy.

Accepted Answer

Net return of investment/Cost of investment

Accepted Answer

Net return of investment/Cost of investment

Accepted Answer

Return on investment

What is ROI, How it is calculated?

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