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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).

Distribution Yield: What It Is, How It Works, and Real-Life Examples Thumbnail

Distribution Yield: What It Is, How It Works, and Real-Life Examples

Alessandra Nicole

Peg Payback Period: Calculation and Key Factors Thumbnail

Peg Payback Period: Calculation and Key Factors

SuperMoney Team

Supernormal Dividend Growth: Definition, How It Works, and Examples Thumbnail

Supernormal Dividend Growth: Definition, How It Works, and Examples

SuperMoney Team

Layered Fees: Definition, Impact, and Strategies Thumbnail

Layered Fees: Definition, Impact, and Strategies

SuperMoney Team

Dividend Drag: Definition and Implications for Investments Thumbnail

Dividend Drag: Definition and Implications for Investments

SuperMoney Team

Frictionless Markets: Understanding Their Impact on Investment Analysis Thumbnail

Frictionless Markets: Understanding Their Impact on Investment Analysis

Abi Bus

Riding the Bull: How to Profit From a Bull Market Thumbnail

Riding the Bull: How to Profit From a Bull Market

SuperMoney Team

Absolute Return Index: Definition, Application, and Insights Thumbnail

Absolute Return Index: Definition, Application, and Insights

SuperMoney Team

Pretax Rate of Return: Understanding, Calculation, and Examples Thumbnail

Pretax Rate of Return: Understanding, Calculation, and Examples

SuperMoney Team

Bogey Benchmarks: Definition, Application, and Examples Thumbnail

Bogey Benchmarks: Definition, Application, and Examples

Abi Bus

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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

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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.