ROI Examples

Return on Investment (ROI) helps to find the efficiency of the investments. It provides the common profitability ratio in percentage. Here are few ROI examples that helps you to find the gain/loss in your business.

Return on Investment Example Problems

Example 1:

Let us consider the problem. A person makes an Initial Investment of 50000 and the his return amount (Earnings) is 80000.

Solution:

We can calculate the Return on Investment (ROI) % using the given formula.

Formula :

ROI = ( (Earnings - Initial Invested Amount) / Initial Invested Amount ) × 100

Substituting the values in the formula,

ROI = ((80000 - 50000) / 50000)) × 100 = (30000 / 50000) x 100 = 60 %

Therefore, the person has 60 % ROI on his investment.

Example 2:

Let us consider the problem : Dhyan started a business investing an initial amount of 12500 and the value of Return Amount he gets after few days is 16500.

Solution:

We can calculate the Return on Investment using the above formula.

Substituting the values in the formula,

ROI = ((16500) - 12500) / (12500)) x 100 =(4000/12500) x 100)) =32 %

Therefore, dhyan has 60 % ROI on his investment.

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