how to calculate return on investment
DEFINITION of 'Return On Investment-ROI'. A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments.ROI measures the amount of return on an investment relative to the investmentâs cost.To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment, and the result is expressed as a percentage or a ratio.The return on investment formula: In the above formula, Gain from Investmentâ refers to the proceeds obtained from the sale of the investment of interest. performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. ROI measures the amount of return on an investment relative to the investmentâs cost.