ROI Calculator

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Understanding ROI (Return on Investment)

ROI is a performance measure used to evaluate the efficiency of an investment. It directly measures the return on a particular investment relative to its cost. The higher the ROI percentage, the more profitable the investment.

How to Calculate ROI

The basic formula for ROI is:

ROI = ((Final Value - Initial Investment) / Initial Investment) × 100%

When to Use ROI Calculator

An ROI calculator is useful in various scenarios:

  • Evaluating potential business investments
  • Comparing different investment opportunities
  • Analyzing marketing campaign performance
  • Assessing real estate investments
  • Measuring project success

ROI Calculation Tips

  • Include all costs in your initial investment figure
  • Consider the time value of money for longer investments
  • Account for ongoing maintenance or operational costs
  • Compare ROI with industry benchmarks