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Returns on Investment (finance)

Returns on investment, or ROI, is a measure of the profitability of an investment. It is calculated by dividing the net profit of the investment by the cost of the investment, and is expressed as a percentage. Continue Reading Below

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Encyclopedia Articles

Discover the definition of financial terms related to returns on investment (finance).

Financial Leverage: How It Works,Types, and Examples Thumbnail

Financial Leverage: How It Works,Types, and Examples

Silas Bamigbola

Effective Yield: Definition, Formula, and Pros & Cons Thumbnail

Effective Yield: Definition, Formula, and Pros & Cons

Rasana Panibe

What is the Rule of 72? Formula and Calculation Thumbnail

What is the Rule of 72? Formula and Calculation

SuperMoney Team

Holding Period Return: What It Is and How To Calculate It Thumbnail

Holding Period Return: What It Is and How To Calculate It

SuperMoney Team

Cost Per Click (CPC) Advertising: Meaning, Key Factors and How to Optimize Thumbnail

Cost Per Click (CPC) Advertising: Meaning, Key Factors and How to Optimize

SuperMoney Team

Yield in Finance: What it is, How to Calculate, Types, and Examples Thumbnail

Yield in Finance: What it is, How to Calculate, Types, and Examples

SuperMoney Team

Fund of Funds Explained: How It Works, Types, and Examples Thumbnail

Fund of Funds Explained: How It Works, Types, and Examples

SuperMoney Team

Compounded Continuously: What It Is, How to Calculate, and Examples Thumbnail

Compounded Continuously: What It Is, How to Calculate, and Examples

SuperMoney Team

Geometric Mean: Definition, Calculation, and Examples Thumbnail

Geometric Mean: Definition, Calculation, and Examples

Silas Bamigbola

Cost of equity: Definition, Formula, and Practical Examples Thumbnail

Cost of equity: Definition, Formula, and Practical Examples

Silas Bamigbola

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Learn About Returns on Investment (finance)

Thumbnail for Blog Article: Warren Buffett's Guide to Investing for Retirement

Warren Buffett's Guide to Investing for Retirement

Andrew Latham

Thumbnail for Blog Article: Best 10 Money-Making Home Improvements for 2026

Best 10 Money-Making Home Improvements for 2026

Jessica Walrack

Thumbnail for Blog Article: How To Get Rich? 7 Clever Investment Strategies

How To Get Rich? 7 Clever Investment Strategies

Gina Young

Thumbnail for Blog Article: Should I Pay Down My Mortgage or Invest?

Should I Pay Down My Mortgage or Invest?

TJ Porter

Thumbnail for Blog Article: What Is Sephora's Return Policy? (2026 Guide)

What Is Sephora's Return Policy? (2026 Guide)

Benjamin Locke

Thumbnail for Blog Article: What Is Best Buy's Return Policy? (2026 Guide)

What Is Best Buy's Return Policy? (2026 Guide)

SuperMoney Team

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About Returns on Investment (finance)

Returns on investment, or ROI, is a measure of the profitability of an investment. It is calculated by dividing the net profit of the investment by the cost of the investment, and is expressed as a percentage. ROI is a useful tool for evaluating the performance of an investment and comparing it to other potential investments. A high ROI indicates that an investment has been profitable, while a low ROI may suggest that the investment has not performed well. ROI can be used to assess a wide range of investments, including stocks, real estate, and businesses.