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ROI is typically calculated as: (Profit ÷ Cost) × 100. Use extra costs to include fees, taxes or transaction costs.
What is ROI?
ROI (Return on Investment) measures how efficient an investment is relative to its cost. It can be used to compare different investments, marketing campaigns, business projects or trading strategies.
ROI formula
- Profit = Final value − Total cost
- ROI (%) = (Profit ÷ Total cost) × 100
FAQ
Is a higher ROI always better?
Not always. Risk, time horizon and volatility matter. ROI alone can be misleading.
Does ROI include time?
No. ROI doesn’t account for how long an investment took. Use CAGR for time-adjusted growth.
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