Return on Investment (ROI) is a profitability metric that measures the return generated on an investment relative to its cost, expressed as a percentage. The higher the ROI, the more profitable the investment.
ROI = (Net profit − Investment) ÷ Investment × 100%
Investment: $10,000 · Profit: $15,000
ROI = (15,000 − 10,000) ÷ 10,000 × 100% = 50%
Calculate it yourself
Use the ROI/NPV/IRR calculator.