How to calculate return on investment (ROI) - Deepstash
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How to calculate return on investment (ROI)

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

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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 base...

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Closing thoughts

  • 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 impac...

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cryptostash

Don’t Risk More Than You Can Afford to Lose!

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Other curated ideas on this topic:

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 base...

How do I calculate my taxes?

If you've bought crypto, HODLed, and sold it later, your tax liability should be fairly easy to calculate. Let's look at a simplified, US-based example. 

Here's the formula:

  • Fair market value - Cost basis = Capital gain / Loss
  • The...

Your Top 1-3 Goals

Prioritize your list of possible goals using and expected value (EV) calculation. Expected Value = Resources Required x Return on Investment x Probability of Success

Take the list of everything you could potentially work on over the next 90 days and then rank them by these criteria.

    ...

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