Calculation Of Return On Investment Analysis

Introduction & Importance

Return on Investment (ROI) analysis is a crucial metric used to evaluate the efficiency of an investment or compare the performance of different investments. It’s expressed as a percentage and calculated by dividing the profit by the cost of the investment.

How to Use This Calculator

1. Enter the investment amount.
2. Enter the profit amount.
3. Click “Calculate ROI”.

Formula & Methodology

ROI is calculated using the formula: ROI = (Profit / Investment) * 100

Real-World Examples

Data & Statistics

Investment	Profit	ROI

Expert Tips

• Consider all costs when calculating ROI.
• Compare ROI with industry benchmarks.

Interactive FAQ

What is a good ROI?

A good ROI varies by industry and investment type. Generally, a 15-20% ROI is considered good.

For more information, see Investopedia’s guide to ROI and BLS’s guide to productivity measurement.