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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).

Internal Rate of Return (IRR) Rule: How It Works and Examples Thumbnail

Internal Rate of Return (IRR) Rule: How It Works and Examples

Silas Bamigbola

Annual Basis: Definition, Applications, and Examples Thumbnail

Annual Basis: Definition, Applications, and Examples

Alessandra Nicole

Annual Return: Definition, Calculation, and Application in Investments Thumbnail

Annual Return: Definition, Calculation, and Application in Investments

Rasana Panibe

What are Returns in Investing? Definition and Examples Thumbnail

What are Returns in Investing? Definition and Examples

SuperMoney Team

Dividend-Adjusted Returns: What It Is, How to Calculate, and Examples Thumbnail

Dividend-Adjusted Returns: What It Is, How to Calculate, and Examples

SuperMoney Team

What is Ex-Post Risk? Understanding, Applications, and Analysis Methods Thumbnail

What is Ex-Post Risk? Understanding, Applications, and Analysis Methods

Abi Bus

Cost of Carry: Definition, Examples, and Strategic Insights Thumbnail

Cost of Carry: Definition, Examples, and Strategic Insights

SuperMoney Team

Portfolio Optimization Strategies: A Guide For Beginners Thumbnail

Portfolio Optimization Strategies: A Guide For Beginners

Lacey Stark

R in Finance: Definition, Applications in Securities Trading, and Formulas Thumbnail

R in Finance: Definition, Applications in Securities Trading, and Formulas

Alessandra Nicole

Risk-Free Assets: Definition, Benefits, and Real-Life Scenarios Thumbnail

Risk-Free Assets: Definition, Benefits, and Real-Life Scenarios

SuperMoney Team

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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?

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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.