#1
23rd March 2016, 01:42 PM
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Formula of return on investment
Hi buddy here I have come to get info about Return On Investment, so can you tell me Formula of it , or tell me how I can calculate it??
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#2
23rd March 2016, 01:43 PM
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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. |