Investing
Return on Investment (ROI)
Financial term in the Investing category
Definition
A measure of investment profitability, calculated as (gain minus cost) divided by cost, expressed as a percentage. A $1,000 investment returning $1,200 has a 20% ROI.
Frequently Asked Questions
What is Return on Investment (ROI)?
A measure of investment profitability, calculated as (gain minus cost) divided by cost, expressed as a percentage. A $1,000 investment returning $1,200 has a 20% ROI.
Why is Return on Investment (ROI) important in personal finance?
Return on Investment (ROI) is an important investing concept that helps individuals make better financial decisions. Understanding Return on Investment (ROI) can improve your financial planning and help you achieve your money goals.
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