What Is Meaning Of Roi?

ROI stands for Return on Investment.
 It’s a metric used to evaluate the profitability or efficiency of an investment.
 In simpler terms, it tells you how much money you’re getting back compared to how much you put in.

  • Measurement: ROI is expressed as a percentage.
  • Formula: ROI is typically calculated by dividing the net profit (gain minus cost) by the initial cost of the investment, then multiplying by 100.
     For example, if you invest $10,000 and get a profit of $9,000, your ROI would be (9.000 / 10.000) * 100 = 90%.
  • Interpretation: A positive ROI indicates a profitable investment, while a negative ROI means you lost money.
     A higher ROI is generally better.

ROI is a valuable tool for investors in real estate or any other field.
 It helps you compare different investment options and make informed decisions about where to allocate your resources.

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