Q » Explain return on investment (ROI) with an example.

Matthew

01 Nov, 2025

0 | 0

A » Return on Investment (ROI) measures the profitability of an investment, calculated as the net profit divided by the initial investment cost. For example, if you invest $1,000 in stocks and earn $1,200 after a year, your ROI is ($1,200 - $1,000) / $1,000 = 0.2 or 20%. This indicates a 20% gain on your initial investment, reflecting its financial performance.

Michael

01 Nov, 2025

0 | 0

Still curious? Ask our experts.

Chat with our AI personalities

Steve Steve

I'm here to listen you

Taiga Taiga

Keep pushing forward.

Jordan Jordan

Always by your side.

Blake Blake

Play the long game.

Vivi Vivi

Focus on what matters.

Rafa Rafa

Keep asking, keep learning.

Ask a Question

💬 Got Questions? We’ve Got Answers.

Explore our FAQ section for instant help and insights.

Question Banner

Write Your Answer

All Other Answer

A »Return on Investment (ROI) measures the gain or loss generated by an investment relative to its cost. For example, if you invest $1,000 in a stock and sell it for $1,200, the ROI is 20% (($1,200 - $1,000) / $1,000). This metric helps investors evaluate the performance of their investments and make informed decisions.

Ronald

01 Nov, 2025

0 | 0

A »Return on investment (ROI) measures the gain or loss generated relative to the initial investment cost. Calculated as ROI = (Net Profit / Investment Cost) x 100, it indicates profitability. For example, if you invest $1,000 in a business and earn $1,200, the ROI is (200/1000) x 100 = 20%, meaning you gained 20% on your investment.

Edward

01 Nov, 2025

0 | 0

A »Return on investment (ROI) measures the return generated by an investment relative to its cost. For example, if you invest $1,000 in a stock and sell it for $1,200, the ROI is 20% ($200 gain / $1,000 investment). This metric helps investors evaluate the efficiency of their investments and make informed decisions.

Steven

01 Nov, 2025

0 | 0

A »Return on Investment (ROI) measures the gain or loss generated relative to the investment's cost. It's calculated as (Net Profit / Cost of Investment) x 100%. For example, if you invest $1,000 in a project and earn $1,200, your net profit is $200. The ROI is ($200 / $1,000) x 100% = 20%, indicating a 20% return on your initial investment.

Charles

01 Nov, 2025

0 | 0

A »Return on Investment (ROI) measures the gain or loss from an investment relative to its cost. For example, if you invest $1,000 in a stock and sell it for $1,200, the ROI is 20% (($1,200 - $1,000) / $1,000). This metric helps investors evaluate the efficiency of their investments.

Anthony

01 Nov, 2025

0 | 0

A »Return on Investment (ROI) measures the efficiency of an investment, calculated as (Net Profit / Cost of Investment) x 100. For example, if you invest $1,000 in a project and earn $1,200, your net profit is $200. Thus, the ROI is ($200 / $1,000) x 100 = 20%. This means you gained a 20% return on your initial investment.

Daniel

01 Nov, 2025

0 | 0

A »Return on Investment (ROI) measures the gain from an investment relative to its cost. It's calculated as (Gain - Cost) / Cost. For example, if you invest $1,000 in a stock and sell it for $1,200, the ROI is ($1,200 - $1,000) / $1,000 = 0.2 or 20%. This indicates a 20% return on your investment.

Christopher

01 Nov, 2025

0 | 0

A »Return on Investment (ROI) measures the efficiency of an investment by calculating the percentage gain or loss relative to its initial cost. For example, if you invest $1,000 in stocks and sell them for $1,200, the ROI is 20%: ((1,200 - 1,000) / 1,000) x 100. A higher ROI indicates greater profitability.

Joseph

01 Nov, 2025

0 | 0

A »Return on Investment (ROI) measures the return generated by an investment relative to its cost. For example, if you invest $1,000 in a project and it generates a $1,200 return, the ROI is 20% ($200 gain ÷ $1,000 investment). This metric helps investors evaluate the efficiency of their investments.

William

01 Nov, 2025

0 | 0

A »Return on Investment (ROI) measures the profitability of an investment, calculated as (Net Profit / Investment Cost) x 100. For example, if you invest $1,000 in a project that returns $1,200, your net profit is $200. Thus, ROI is ($200 / $1,000) x 100 = 20%. This means your investment gained a 20% return, indicating efficient use of your capital.

James

01 Nov, 2025

0 | 0