What is Return on Investment?
Return on investment, often referred to as ROI, is the actual dollar gain or loss from an investment. This is a simple calculation that will guide you in making all business investment decisions.
is the initial dollar amount you invested.
is the dollar value of the investment now.
How to Calculate Return on Investment
Determine the following two things:
- 1. Your initial investment amount.
- 2. The actual dollar value of the investment today.
Simple ROI Formula Cheatsheet
ROI = (Gain - Initial Investment) / Initial Investment