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Return on investment (ROI) is a metric used to understand the profitability of an investment. ROI compares how much you paid for an investment to how much you earned to evaluate its efficiency ...
Fortunately, the formula to calculate the return on investment is very simple. You divide the net profit by the cost of investment, then multiply it by 100 to get a percentage: ...
Learn how to calculate ROI (Return on Investment) and use it to evaluate the profitability of your investments. Discover the ROI formula and practical examples.
Sometimes in the basic ROI formula the "current value" is expressed as a "gain on investment." This isn't completely accurate. If you started with $100, and ended with $140, your gain on the ...
Return on investment is a metric that measures the amount of profitability earned on a particular investment by comparing its costs to its returns. ... The ROI formula is simple and easy to use.
The formula for calculating return on investment (ROI) is as follows: Return on Investment (ROI) = [Cost of Investment / Net Profit]×100. What Is A Good Return on Investment (ROI)?
Most investors would view an average annual rate of return of 10% or more as a good ROI for long-term investments in the stock market. However, keep in mind that this is an average.
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