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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).

Inefficient Portfolio: Definition, Optimization Strategies, and Case Study Thumbnail

Inefficient Portfolio: Definition, Optimization Strategies, and Case Study

SuperMoney Team

Average Return: Definition, Calculation, and Practical Applications Thumbnail

Average Return: Definition, Calculation, and Practical Applications

Abi Bus

Certificate of Accrual on Treasury Security (CATS): Definition, Redemption, and Investment Insights Thumbnail

Certificate of Accrual on Treasury Security (CATS): Definition, Redemption, and Investment Insights

Alessandra Nicole

Yield on Cost Explained: Assessing Long-Term Investment Performance Thumbnail

Yield on Cost Explained: Assessing Long-Term Investment Performance

Rasana Panibe

Timing Risk: Understanding its Impact on Investments and Strategies Thumbnail

Timing Risk: Understanding its Impact on Investments and Strategies

Alessandra Nicole

Realization Multiple in Private Equity: Definition, Calculation, and Practical Insights Thumbnail

Realization Multiple in Private Equity: Definition, Calculation, and Practical Insights

Alessandra Nicole

Long-Term Growth (LTG): Definition, Portfolio Strategies, And Challenges Thumbnail

Long-Term Growth (LTG): Definition, Portfolio Strategies, And Challenges

Dan Agbo

Modified Dietz Method: Understanding, Application, and Real-world Examples Thumbnail

Modified Dietz Method: Understanding, Application, and Real-world Examples

Silas Bamigbola

Variability: Definition, Application, And Significance Thumbnail

Variability: Definition, Application, And Significance

Dan Agbo

Money-Weighted Rate of Return: Calculation, Usage, and Examples Thumbnail

Money-Weighted Rate of Return: Calculation, Usage, and Examples

Alessandra Nicole

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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.