Return on Investment

Definition

Return on investment is a ratio between net profit (over a period) and cost of investment (resulting from an investment of some resources at a point in time). A high ROI means the investment’s gains compare favorably to its cost. As a performance measure, ROI is used to evaluate the efficiency of an investment or to compare the efficiencies of several different investments. In economic terms, it is one way of relating profit to capital invested.

计算公式

ROI = (Current Value of Investment / Cost of Investment ) - 1