Whether it’s an individual or a company both make the investment for the purpose of making gains from that investment. ROI is a term used in the context of finance which means return on investment, ROI helps the individual or a company in assessing what was the rate of return on investment.
ROI can be calculated as
(Selling price of investment – Purchase price of investment/Purchase price of investment) *100
A positive percentage figure implies profit while a negative percentage figure implies loss on investment.