Financial Terms / return on investment

# Maximizing Investment Returns with ROI

ROI is a great way to measure the profitability of an investment, allowing you to compare different investments and make informed decisions.

## Formula

``ROI = (final gain or loss / invested value) X 100%``

## How do I calculate the return on investment?

`When calculating Return on Investment (ROI), it is important to use the formula: `ROI = (final gain or loss / invested value) X 100%`. This formula takes two inputs, which are the initial amount invested and the final gain or loss. By dividing the final gain or loss by the invested value, you can easily calculate the ROI. Tools such as  Sourcetable can help you calculate the ROI quickly and accurately.`

## What is Return on Investment (ROI)?

`ROI is a popular measure of profitability which evaluates how well an investment has performed. It is a simple and versatile measure which does not account for the holding period or passage of time.`

## What is the benefit of using ROI?

`The primary benefit of using ROI is that it allows investors to quickly and easily compare the profitability of different investments. This allows investors to make informed decisions about where to invest their money.`

## Key Points

How do I calculate return on investment?
`ROI = (final gain or loss / invested value) X 100%`
ROI is a Popular Profitability Metric
Return on investment (ROI) is a financial metric that measures the profitability of an investment. It is often used to compare the performance of different investments, and it is a simple but effective way of evaluating the success or failure of investments.
ROI Evaluates How Well an Investment Has Performed
ROI is used to assess the profitability of an investment over a specific period of time. It takes into account the money invested and the money earned, then calculates the percentage of the return relative to the amount of money invested.
ROI Can Be Used to Compare Investments
ROI is a great tool for comparing investments. By looking at the ROI of one investment relative to another, investors can quickly get a sense of which investments have performed better or worse over a certain period of time.
ROI is Not the Only Metric Used to Evaluate Investments
ROI is just one of many metrics used to evaluate investments. Other metrics such as net present value (NPV) and internal rate of return (IRR) are also commonly used to assess the profitability of investments. 