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Return on Investment Formula

GoReturn on Investment given Net Profit Formula

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Return on investment (ROI) is the ratio of a profit or loss made in a fiscal year expressed in terms of an investment. Check FAQs

ROI = \frac{R - COI}{COI}

ROI - Return on Investment (ROI)?R - Return?COI - Total Investment?

Return on Investment Example

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Here is how the Return on Investment equation looks like with Values.

Here is how the Return on Investment equation looks like with Units.

Here is how the Return on Investment equation looks like.

0.25 = \frac{500000 - 400000}{400000}

0.25 = \frac{500000 - 400000}{400000}

0.25 = \frac{500000 - 400000}{400000}

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Return on Investment Solution

Follow our step by step solution on how to calculate Return on Investment?

FIRST Step Consider the formula

ROI = \frac{R - COI}{COI}

Next Step Substitute values of Variables

∴

ROI = \frac{500000 - 400000}{400000}

Next Step Prepare to Evaluate

∴

ROI = \frac{500000 - 400000}{400000}

LAST Step Evaluate

∴

ROI = 0.25

Return on Investment Formula Elements

Variables

Return on Investment (ROI)

Return on investment (ROI) is the ratio of a profit or loss made in a fiscal year expressed in terms of an investment.

Symbol: ROI

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Return on Investment (ROI)

Return

Return is something that you earn on your portfolio or bank account.

Symbol: R

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Return

Total Investment

Total Investment simply refers to the amount of money that a person has in a given place.

Symbol: COI

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Total Investment

Other Formulas to find Return on Investment (ROI)

Go Return on Investment given Net Profit

ROI = (\frac{NP}{COI}) \cdot 100

How to Evaluate Return on Investment?

Return on Investment evaluator uses Return on Investment (ROI) = (Return-Total Investment)/Total Investment to evaluate the Return on Investment (ROI), Return on Investment can be defined as the ratio of a profit or loss made in a fiscal year expressed in terms of an investment when return is given. Return on Investment (ROI) is denoted by ROI symbol.

How to evaluate Return on Investment using this online evaluator? To use this online evaluator for Return on Investment, enter Return (R) & Total Investment (COI) and hit the calculate button.

FAQs on Return on Investment

What is the formula to find Return on Investment?

The formula of Return on Investment is expressed as Return on Investment (ROI) = (Return-Total Investment)/Total Investment. Here is an example- 0.25 = (500000-400000)/400000.

How to calculate Return on Investment?

With Return (R) & Total Investment (COI) we can find Return on Investment using the formula - Return on Investment (ROI) = (Return-Total Investment)/Total Investment.

What are the other ways to Calculate Return on Investment (ROI)?

Here are the different ways to Calculate Return on Investment (ROI)-

Return on Investment (ROI)=(Net Profit/Total Investment)*100

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Return on Investment Formula

​GoReturn on Investment given Net Profit Formula

Return on Investment Example

Return on Investment Solution

Return on Investment Formula Elements

Other Formulas to find Return on Investment (ROI)

How to Evaluate Return on Investment?

FAQs on Return on Investment

Variable Name

GoReturn on Investment given Net Profit Formula