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How To Calculate Return On Investment
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How To Calculate Return On Investment

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Return on investment also abbreviated as ROI measures the net profit / loss generated from an investment. ROI helps an investor to make a good choice while investing in the company.

How To Calculate ROI?

The formula of ROI is

How To Calculate Return On Investment

Example:

An investor was to purchase a stock for $500 and sell it at $600 after one year. Calculate the return on investment.

How To Calculate Return On Investment

The return on investment in this case is $100 and it is positive hence,it is right to advice the investor to invest.

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