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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).

Money Market Yield: Definition, Calculation, and Examples Thumbnail

Money Market Yield: Definition, Calculation, and Examples

Silas Bamigbola

Compound Return Explained: What It Is, How It Works, and Examples Thumbnail

Compound Return Explained: What It Is, How It Works, and Examples

Alessandra Nicole

What is Portfolio Turnover? Definition, Examples and Pros and Cons Thumbnail

What is Portfolio Turnover? Definition, Examples and Pros and Cons

Alessandra Nicole

Information Ratio (IR) Definition, Formula, vs. Sharpe Ratio Thumbnail

Information Ratio (IR) Definition, Formula, vs. Sharpe Ratio

Alessandra Nicole

Batting Average: Metrics, Strategies, and Real-world Wins Thumbnail

Batting Average: Metrics, Strategies, and Real-world Wins

SuperMoney Team

The Dynamics of Performance Drag: Understanding, Examples, and Strategies Thumbnail

The Dynamics of Performance Drag: Understanding, Examples, and Strategies

Alessandra Nicole

Analyzing Returns: A Guide to Effective Attribution Analysis Thumbnail

Analyzing Returns: A Guide to Effective Attribution Analysis

Rasana Panibe

Realized Yield: Definition, Calculation, and Implications Thumbnail

Realized Yield: Definition, Calculation, and Implications

Dan Agbo

Bank Discount Rate: Definition, Calculation, and Application Thumbnail

Bank Discount Rate: Definition, Calculation, and Application

Dan Agbo

Bank Discount Basis: Definition, Calculation, and Examples Thumbnail

Bank Discount Basis: Definition, Calculation, and Examples

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.