Return On Investment (ROI)
UIUX 360 / 06-December-2022 / minute read

Return On Investment (ROI)

Return on investment (ROI) is an approximate measure of the profitability of an investment. ROI is calculated by subtracting the initial cost of an investment from its ending value, then dividing this new number by the cost of the investment, and finally

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What is Return On Investment (ROI)?

Overview

Return on investment (ROI) is an approximate measure of the profitability of an investment. ROI is calculated by subtracting the initial cost of an investment from its ending value, then dividing this new number by the cost of the investment, and finally multiplying by 100.

ROI helps product teams evaluate whether something is worth the effort. A measure for evaluating business performance. In traditional finance, ROI is the most common "profitability ratio" often calculated by dividing net profit by total assets. The general idea of ​​ROI helps product teams evaluate whether something is worth the effort. Return on Investment (ROI) is a financial ratio that is used to calculate the return an investor receives on their investment cost. It is usually measured as the net income divided by the original capital cost of the investment.

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