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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).

Absolute Percentage Growth: Definition, Implications, and Considerations Thumbnail

Absolute Percentage Growth: Definition, Implications, and Considerations

Dan Agbo

Nominal: Definition, Applications, and Importance Thumbnail

Nominal: Definition, Applications, and Importance

Silas Bamigbola

Investment Insights: Performance-Based Indexes Demystified Thumbnail

Investment Insights: Performance-Based Indexes Demystified

Silas Bamigbola

Average Annual Yield: Understanding, Application, and Metrics Thumbnail

Average Annual Yield: Understanding, Application, and Metrics

Alessandra Nicole

Pooled Internal Rate of Return (PIRR): Definition, Calculation, and Applications Thumbnail

Pooled Internal Rate of Return (PIRR): Definition, Calculation, and Applications

Abi Bus

Annualized Returns: Unveiling the Formula, Examples, and Smart Strategies Thumbnail

Annualized Returns: Unveiling the Formula, Examples, and Smart Strategies

SuperMoney Team

Valuation Analysis: Exploring Methods, Examples, and Impact Thumbnail

Valuation Analysis: Exploring Methods, Examples, and Impact

Silas Bamigbola

Equity Market Neutral: Unveiling the Balance in Trading Thumbnail

Equity Market Neutral: Unveiling the Balance in Trading

SuperMoney Team

Net Exposure: Understanding, Adjusting, and Examples Thumbnail

Net Exposure: Understanding, Adjusting, and Examples

SuperMoney Team

Gross Yield: Definition, Applications, and Real-Life Scenarios Thumbnail

Gross Yield: Definition, Applications, and Real-Life Scenarios

SuperMoney Team

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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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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.