Return on Investment (ROI) is the measurement of common profitability ratio. It helps to identify the amount of loss or profit obtained in the business for the total invested cost. Use the online ROI calculator to find rate of return on investment by providing the initial investments and return amounts.
The Return on Investment (ROI) is the ratio of the difference between earnings and the initial amount invested to the initial amount invested. ROI is often expressed in terms of percentage. Hence the value is finally multiplied by 100.
In simple ROI is found by dividing the net profit by the total assets. ROI is the ideal way to interpret and choose the best kind of investments. ROI calculator helps you to find the profitability of your business. ROI is often confused with ROR (Rate of Return). But, both are not same, there is huge difference between the two. ROR can denote a period of time, often annually, while ROI doesn't.
An investor makes an initial investment of Rs. 50000 and his earnings (i.e) return amount is Rs. 90000.
Return on Investment = ( (90000 - 50000) / 50000 ) x 100
= (40000 / 50000) x 100