Worked example
Here is a simple ROI example:
(15,000 − 10,000) ÷ 10,000 × 100 → 50%.Measure net gain, total ROI, and an annualized comparison rate.
Does not account for risk, inflation, or timing of cash flows.
Practical guide
Here is a simple ROI example:
(15,000 − 10,000) ÷ 10,000 × 100 → 50%.Measure net gain, total ROI, and an annualized comparison rate.
ROI = (total return − investment) ÷ investment × 100
Use the result as a planning estimate. Check important financial, tax, legal, investment, or health decisions with a qualified professional.