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. It is expressed in percentage. It 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. Use the online return on investment (ROI) calculator to find rate of ROI by providing the initial investments and return amounts.
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