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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).

Horizon Analysis: Understanding, Application, and Risks Thumbnail

Horizon Analysis: Understanding, Application, and Risks

Alessandra Nicole

Capital Gains Yield: Definition, Calculation, And Examples Thumbnail

Capital Gains Yield: Definition, Calculation, And Examples

Dan Agbo

Understanding Death Bonds: What They Are, Risks, and Benefits Thumbnail

Understanding Death Bonds: What They Are, Risks, and Benefits

Abi Bus

Mutual Fund Costs and Expenses: Understanding, Impact, and Examples Thumbnail

Mutual Fund Costs and Expenses: Understanding, Impact, and Examples

Silas Bamigbola

Understanding Dead Money: Definition, Impact, and Strategies Thumbnail

Understanding Dead Money: Definition, Impact, and Strategies

Abi Bus

Value Added Monthly Index (VAMI): Understanding Performance Metrics & Analytical Tools Thumbnail

Value Added Monthly Index (VAMI): Understanding Performance Metrics & Analytical Tools

Alessandra Nicole

Expected Return: Formula, How It Works, Limitations, and Examples Thumbnail

Expected Return: Formula, How It Works, Limitations, and Examples

Alessandra Nicole

What is Unadjusted Basis? Definition, Calculation, and Practical Applications in Finance Thumbnail

What is Unadjusted Basis? Definition, Calculation, and Practical Applications in Finance

Alessandra Nicole

Actual Returns: Understanding, Analyzing, and Navigating the Investment Landscape Thumbnail

Actual Returns: Understanding, Analyzing, and Navigating the Investment Landscape

Silas Bamigbola

Dividend Capture Strategy: How It Works, Examples, and Considerations Thumbnail

Dividend Capture Strategy: How It Works, Examples, and Considerations

SuperMoney Team

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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

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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.