Return of investment (ROI) is a rough measure of an investment’s profitability. It is a performance measure used to assess investment efficiency or to compare the effectiveness of different investments. The return of investment (ROI) formula helps in analyzing the total loss or gain produced on a particular investment compared to the amount of money spend.
For comparing different investment opportunities, the return on investment calculator is an efficient tool. It helps in computing the ROI for any business by applying a simple ROI formula that helps in determining the ROI by subtracting the cost from the total income and dividing it by the total price.
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