What is ROI

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.

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