What is the formula of ROI?
Hi,
ROI = Investment Gain / Investment Base. The first version of the ROI formula (net income divided by the cost of an investment) is the most commonly used ratio.
Hi,
Return on investment (ROI) is a financial ratio used to calculate the benefit an investor will receive in relation to their investment cost. It is most commonly measured as net income divided by the original capital cost of the investment.
ROI Formula
There are several versions of the ROI formula. The two most commonly used are shown below:
ROI = Net Income / Cost of Investment
or
ROI = Investment Gain / Investment Base
Hi,
Return on investment (ROI) is a measure of the profit earned from each investment. Like the "return" (or profit) that you earn on your portfolio or bank account, it's calculated as a percentage.
In simple terms, the ROI formula is:
ROI = (Current Value of Investment - Cost of Investment) / Cost of Investment
ROI = Investment Gain / Investment Base. The first version of the ROI formula (net income divided by the cost of an investment) is the most commonly used ratio.