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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).

Future Value: What It Is, How to Calculate, and Examples Thumbnail

Future Value: What It Is, How to Calculate, and Examples

Silas Bamigbola

Investment Basics: How It Works, Types, and Examples Thumbnail

Investment Basics: How It Works, Types, and Examples

Silas Bamigbola

Alpha in Investing: Real-Life Examples for Investors Thumbnail

Alpha in Investing: Real-Life Examples for Investors

Allan Du

Excess Returns Explained: What They Are, How to Calculate, and Examples Thumbnail

Excess Returns Explained: What They Are, How to Calculate, and Examples

Alessandra Nicole

Annualized Total Return (CAGR): Definition, Calculation, and Practical Applications Thumbnail

Annualized Total Return (CAGR): Definition, Calculation, and Practical Applications

Alessandra Nicole

Unveiling the Average Annual Return (AAR): Your Ultimate Guide to Measuring Mutual Fund Performance Thumbnail

Unveiling the Average Annual Return (AAR): Your Ultimate Guide to Measuring Mutual Fund Performance

Alessandra Nicole

Conditional Prepayment Rate (CPR): How to Calculate and Interpret Its Effects Thumbnail

Conditional Prepayment Rate (CPR): How to Calculate and Interpret Its Effects

Silas Bamigbola

Nominal Rate of Return: Definition, How It Works, and Examples Thumbnail

Nominal Rate of Return: Definition, How It Works, and Examples

Silas Bamigbola

Maximizing Returns: Understanding EBITDA/EV Multiple in Financial Valuation Thumbnail

Maximizing Returns: Understanding EBITDA/EV Multiple in Financial Valuation

Alessandra Nicole

Mastering Short-Term Investments: Definition, Strategies, and Benefits Thumbnail

Mastering Short-Term Investments: Definition, Strategies, and Benefits

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

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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.