What is the formula of ROI?

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Tushar singh asked 20-Feb-2018 in Google Products by Tushar singh

What is the formula of ROI?

1 Answer

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Vishal Kesarwani answered 21-Feb-2018 by Vishal Kesarwani

Return on investment is basically the ratio of appropriate profit or loss which is been made in the fiscal year in terms of a certain investment. The return on investment is bee viewed in reference to the percentage of hike and downfall in the value of the certain investment been done during the year.

What is the formula of ROI?

Suppose you have made an investment of $100 in share stock and after a certain duration its value hikes to $110 by the end of the depicted duration. The return on the investment is a simple 10%, assuming no dividends were paid.

Primary formula for calculating Return on investment 
                                                        What is the formula of ROI?
So, in the above formula the “Gain from investments” refers to the proceeds or you can say profit made by the sale of investment of interest. As Return on investment is been measured in reference to the percentage the comparison could be made easily compared to other investments as it allows to measure variant types of investments to an individual.

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