Return on Investment

Calculation of ROI with example

ROI=[ValueofInvestmentāˆ’CostofInvestment]āˆ—100[CostofInvestment]ROI = \frac{[Value of Investment - Cost of Investment] * 100} { [Cost of Investment]}

Cost of Investment = $100,000

Value of Investment = $145,000

ROI=[145,000āˆ’100,000]āˆ—100[100,000]=[45,000]āˆ—100[100,000]ROI = \frac{[145,000 - 100,000] * 100} { [100,000]} = \frac{[45,\sout{000}] * \sout{100}} { [\sout{100,000}]}

ROI = 45 %

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