How To Calculate Return On Investment

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How to calculate roi step haiper

How To Calculate Roi Step Haiper

The basic formula for ROI is ROI Gain from Investment Cost of Investment Cost of Investment As a most basic example Bob wants to calculate the ROI on his sheep farming operation From the beginning until the present he invested a total of 50 000 into the project and his total profits to date sum up to 70 000 70 000 50 000 50 000 ROI Formula The formula for calculating the return on investment (ROI) is as follows. Return on Investment (ROI) = (Gross Return – Cost of Investment) ÷ Cost of Investment The difference between the gross return and the cost of investment is the net return. Return on Investment (ROI) = Net Return ÷ Cost of Investment

how to calculate return on investment

How To Calculate Return On Investment

How To Calculate Return On InvestmentROI = Net Income / Cost of Investment. or. ROI = Investment Gain / Investment Base. The first version of the ROI formula (net income divided by the cost of an investment) is the most commonly used ratio. The simplest way to think about the ROI formula is taking some type of “benefit” and dividing it by the “cost”. The return on investment ROI formula is as follows begin aligned text ROI dfrac text Current Value of Investment text Cost of Investment text Cost of Investment