Mar 28, 2025

Return on Investment

• The measure of how profitable an investment is by evaluating its efficiencies and effectiveness.

How do I remember it?

• Think of ROI as a formula, (Net Profit / Cost of Investment) x 100. A positive ROI means you are making money, a negative ROI means you are losing money.

Real world example

• For example, lets say you invest $10,000 in marketing and your business gains $50,000 in sales, the ROI is 400%.