top of page

Return on Investement

Return on Investment, commonly known as ROI, is a financial metric used to measure the profitability and efficiency of an investment or trade. ROI is expressed as a ratio or percentage value and represents the return on an investment relative to its cost.

ROI is a crucial concept in finance and is used to evaluate the performance of an investment. A high ROI indicates that the investment has been profitable, while a low ROI suggests that the investment has not been successful.

To calculate ROI, the net profit or loss from an investment is divided by the cost of the investment and multiplied by 100 to get a percentage value. For example, if an investment costs $10,000 and generates a net profit of $2,000, the ROI would be 20% (($2,000/$10,000) x 100).

ROI is used in a variety of industries and is an important tool for evaluating the success of marketing campaigns, capital expenditures, and other investments.

Overall, ROI is a critical concept in finance and helps investors and businesses make informed decisions about their investments.

0 Ansichten0 Kommentare

Aktuelle Beiträge

Alle ansehen


In trading, rollover refers to the process of extending the settlement date of an open position to the next trading day. This involves closing the existing position at the end of the trading day and o

Risk-Reward Ratio

The risk-reward ratio is a financial metric used to evaluate the potential profit and loss of a trade. It represents a comparison between the potential reward or profit of a trade and the potential ri


Exchange rate is the price of one currency expressed in terms of another currency. In the foreign exchange market, exchange rates determine the value of one currency relative to another and play a cru

bottom of page