Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments.
 | | Return on Investment (ROI) | | Return on Investment (ROI) is a performance measure, used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments. ROI measures the amount of return on an investment, relative to the investment's cost. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment. The result is expressed as a percentage or a ratio. | | Breaking it Down: | | ROI is a popular metric because of its versatility and simplicity. Essentially, ROI can be used as a rudimentary gauge... | | Read More » | | Related to "Return on Investment (ROI)" | | | | Efficiency | | Efficiency is a level of performance that uses the lowest amount of inputs to create the greatest amount of outputs. | | Read More » | | | Opportunity Cost | | Opportunity cost is a benefit missed when an investor, individual or business chooses one alternative over another. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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