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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).

Compound Net Annual Rate (CNAR): Definition, Calculation, and Practical Insights Thumbnail

Compound Net Annual Rate (CNAR): Definition, Calculation, and Practical Insights

Alessandra Nicole

Basis Price: Understanding its Significance, Calculation, and Application Thumbnail

Basis Price: Understanding its Significance, Calculation, and Application

Alessandra Nicole

Relative Return: Definition, Application, and Common Questions Thumbnail

Relative Return: Definition, Application, and Common Questions

Abi Bus

Advertising Budgets: Essentials, Real-World Examples Thumbnail

Advertising Budgets: Essentials, Real-World Examples

Silas Bamigbola

Total Shareholder Return (TSR): Definition, Examples, and Benefits Thumbnail

Total Shareholder Return (TSR): Definition, Examples, and Benefits

SuperMoney Team

Time-Weighted Rate of Return (TWR): Calculation, Applications, and Comparisons Thumbnail

Time-Weighted Rate of Return (TWR): Calculation, Applications, and Comparisons

Alessandra Nicole

Gross Returns: Definition, Examples, and Evaluation Tips Thumbnail

Gross Returns: Definition, Examples, and Evaluation Tips

SuperMoney Team

Inflation-Adjusted Returns: What It Is, How to Calculate, and Real-World Examples Thumbnail

Inflation-Adjusted Returns: What It Is, How to Calculate, and Real-World Examples

Alessandra Nicole

Nominal Yield: Exploring Impact, Examples, and Optimization Thumbnail

Nominal Yield: Exploring Impact, Examples, and Optimization

Silas Bamigbola

Average Annual Growth Rate (AAGR) Explained: How It Works, Types, and Examples Thumbnail

Average Annual Growth Rate (AAGR) Explained: How It Works, Types, and Examples

Alessandra Nicole

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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?

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.