Return on investment (ROI) is a metric used to measure the profitability of investments. This can include cash investments like stocks, portfolios, and real estate, as well as business endeavors.
ROI serves two main purposes: to calculate the projected return on an investment before making it, and to measure the actual return after the investment has been made.
Entrepreneurs can benefit from understanding ROI for making informed investment decisions. Explore our free courses to enhance your business acumen.
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What Is Return on Investment (ROI)?
What Is Return on Investment (ROI)?
Return on investment (ROI) is a simple formula that compares the profit made from an investment to the initial investment. It’s commonly used by businesses and investors to assess the value of their investments.
How to Calculate Your Return on Investment (ROI)
The ROI Formula
What Is a Good ROI?
The definition of a good ROI varies based on the type of investment. In marketing, 500% is considered solid, while in stock investments, 7% is standard. Doing market research can help determine if your ROI is competitive.
Source: ( foundr.com / Financementality.com )
