Return on Investment

Return on Investment (ROI) is usually expressed as a percentage and is typically used for personal financial decisions, to compare a company’s profitability or to compare the efficiency of different investments. To calculate ROI, the benefit or return of an investment is divided by the cost of the investment, and the result is expressed as a percentage or a ratio. In purely economic terms, it is one way of considering profits in relation to capital invested. It is a very popular metric because of its versatility and simplicity.