Meaning
Understand how to measure the effectiveness of your investments.Definition
ROI, or Return on Investment, is a key performance metric. It evaluates the efficiency or profitability of an investment by measuring the return relative to its cost.Calculation
Calculated as: (Net Profit – Cost of Investment) / Cost of Investment x 100%. A higher percentage means better returns.Significance
ROI helps assess investment performance, compare options, and guide informed financial decisions. It’s vital for business and personal finance.Author
