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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).

Portfolio Returns: Strategies, Trends, and Real-Life Examples Thumbnail

Portfolio Returns: Strategies, Trends, and Real-Life Examples

Silas Bamigbola

Sharpe Ratio: A Guide to Measuring Risk-Adjusted Returns Thumbnail

Sharpe Ratio: A Guide to Measuring Risk-Adjusted Returns

SuperMoney Team

Return-on-Capital Gain: Definition, Calculation, and Implications Thumbnail

Return-on-Capital Gain: Definition, Calculation, and Implications

Abi Bus

Dollar Price: What It Is, Examples, and Strategies Thumbnail

Dollar Price: What It Is, Examples, and Strategies

SuperMoney Team

Annual Rate of Return: What it is and how to calculate it Thumbnail

Annual Rate of Return: What it is and how to calculate it

SuperMoney Team

Unraveling the Real Rate of Return: Mastering Inflation-Adjusted Investment Gains Thumbnail

Unraveling the Real Rate of Return: Mastering Inflation-Adjusted Investment Gains

Alessandra Nicole

Understanding Treasury Bills (T-Bills): What They Are and How They Work Thumbnail

Understanding Treasury Bills (T-Bills): What They Are and How They Work

SuperMoney Team

Load-Adjusted Returns in Mutual Funds: Definition, Calculation, and Impact on Investments Thumbnail

Load-Adjusted Returns in Mutual Funds: Definition, Calculation, and Impact on Investments

Abi Bus

Reinvestment in Finance: Mechanics, Benefits, and Risks Thumbnail

Reinvestment in Finance: Mechanics, Benefits, and Risks

Alessandra Nicole

At the Lowest Possible Price: Definition, Strategies, and Risks Thumbnail

At the Lowest Possible Price: Definition, Strategies, and Risks

Dan Agbo

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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.