The ROI formula is quite simple. You take the current value of the investment and subtract the original investment cost.

Then, you divide this sum by the original cost of the investment.

  • ROI = (current value - original cost) / original cost
  • ROR = Rate of return

44 STASHED

5 LIKES

How to Calculate Return on Investment (ROI) | Binance Academy

academy.binance.com

What is return on investment (ROI)?

Return on investment (ROI) is a way to measure an investment's performance. It also can be used to compare different investments.

  • ROI calculation applies to not just trading or investment, but any kind of business or purchase. 
  • Calculating an estimated ROI based on all your projected expenses and returns may help you make a better business decision.

33 STASHED

1 LIKE

  • The return on investment formula is a core part of tracking the performance of any portfolio, investment, or business.
  • ROI isn't the ultimate metric, but it can be useful. 
  • You also need to consider opportunity cost, risk/reward ratio, and other factors that may have an impact on your choice between different investment opportunities. 
  • As a starting point, however, ROI can be a good barometer to evaluate a potential investment.

35 STASHED

Deepstash helps you become inspired, wiser and productive, through bite-sized ideas from the best articles, books and videos out there.

GET THE APP:

❤️ Brainstash Inc.