The business could then calculate the ROI when evaluating two different types of computers using anticipated costs and projected gains to determine which ROI is higher. Which computer represents the better investment: Investment A or Investment B? The business could also calculate the ROI at the end...
How to calculate ROI There are multiple ways to calculate return on investment depending on your industry or focus. But in general, you can use this basic ROI formula to figure out your investment gains: ROI = (Revenue – Investment) / Investment Let’s look at a basic example. Say that...
Have you ever wondered how to calculate return on investment? If so, you’ve come to the right place. The actual formula to calculate return on investment is simple enough that you can perform on a basic calculator. Let’s take a look. ...
How to Calculate Return on Investment ROI uses a simple formula: Return on investment = Net Profit Returned X 100 Cost of Investment To demonstrate, let’s look at a sample calculation, based on a hypothetical equipment investment. If a business invests $30,000 in manufacturing equip...
The Formula to Calculate Return on Investment (ROI) Return on investment is the ratio of the purchase price to the difference between thepurchase priceand the selling price. Even though it is a ratio, it is usually expressed as a percentage. ...
Stop Guessing ROI! Master the formula & calculate your exact return with our clear guide. Plus, inspiring examples to skyrocket your profits!
The ROI formula The basic idea of ROI is to express the additional money or value you have received — the benefit or return you gained — as a percentage of your initial investment. Here’s the formula: (Return/Initial Investment) x 100 = ROI You multiple by 100 to convert the ratio ...
How to Calculate ROI Now that you have a solid grasp on what return on investment means and how businesses and investors use it, let’s look at how to calculate it. The ROI Formula The simple ROI formula is typically used when purchasing a piece of equipment, launching a new product or...
How to Calculate Return on Investment (ROI) The return on investment (ROI)formula is as follows: ROI=Current Value of Investment−Cost of InvestmentCost of InvestmentROI=Cost of InvestmentCurrent Value of Investment−Cost of Investment "Current Value of Investment” refers to the pr...
The simplest way to calculate the ROI of a marketing campaign is by measuring the increase in sales, as a percentage of the total cost of the campaign. The formula for this is: ROI = (Sales growth- Marketing Cost) / Marketing Cost. There are also more elaborate ways to measure ROI, su...