ROI (Return on Investment) is calculated as the profit or loss made on an investment, expressed as a percentage of the original investment. To calculate ROI, divide the net gain or loss by the cost of the investment and multiply by 100. For example, if you invested $100 and made a profit of $20, the ROI is 20/100 * 100 = 20%.
A positive ROI indicates a profitable investment while a negative ROI indicates a loss. To evaluate the success of an investment, it's important to consider factors such as time horizon and risk tolerance.
A positive ROI indicates a profitable investment while a negative ROI indicates a loss. To evaluate the success of an investment, it's important to consider factors such as time horizon and risk tolerance.