What is ROI?
Definition: ROI (Return on Investment) is a financial metric that measures profit relative to invested capital. It indicates how profitable an investment is and is used to assess the financial success of investments or projects.
How is ROI calculated?
The formula for ROI is:
ROI = (Profit / Investment) × 100
Profit: The revenue or profit from the investment.
Investment: The invested capital, or the costs incurred for implementing the project or investment.
What does the ROI value mean?
A positive ROI indicates that the investment was profitable, while a negative ROI shows that a loss occurred.
Where is this value used?
ROI is frequently used to evaluate the success of marketing campaigns, business projects, or investments in assets.