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23rd March 2016, 01:43 PM
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Join Date: May 2012
Re: Formula of return on investment

As you asking I am telling Return on investment measures the gain or loss generated on an investment relative to the amount of money invested.

Return on investment is normally expressed as a percentage and is typically apply for personal financial decisions, to compare a company's profitability or to compare the efficiency of different investments.

The return on investment formula is:

ROI = (Net Profit / Cost of Investment) x 100


For Return on investment we are calculate the rate of change of monies due to investing. By applying the return on investment formula, we can determine a X% change in monies on an investment, which is synonymous with a X% return on investment.

This formula can be applied to any form of investment including projects within a corporation, a company as a whole, a personal investment by an individual, and investment in an appreciable asset.


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