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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).

Mean-Variance Analysis: Definition, Applications, and Examples Thumbnail

Mean-Variance Analysis: Definition, Applications, and Examples

Silas Bamigbola

The Power of Hurdle Rates for Businesses and Investors Thumbnail

The Power of Hurdle Rates for Businesses and Investors

Silas Bamigbola

Mastering the Risk/Reward Ratio in Your Investment Strategy Thumbnail

Mastering the Risk/Reward Ratio in Your Investment Strategy

Alessandra Nicole

Treynor Ratio: Meaning, Insights, and Calculation Method Thumbnail

Treynor Ratio: Meaning, Insights, and Calculation Method

Silas Bamigbola

Portfolio Variance: Formula, Calculation, and Significance Thumbnail

Portfolio Variance: Formula, Calculation, and Significance

Silas Bamigbola

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Learn About Returns on Investment (finance)

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Warren Buffett's Guide to Investing for Retirement

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Best 10 Money-Making Home Improvements for 2026

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How To Get Rich? 7 Clever Investment Strategies

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

Should I Pay Down My Mortgage or Invest?

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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.