ROI = (Net Profit / Cost of Investment) × 100
Net Profit = Total Return − Total Investment Cost
Identify the total amount invested
Identify the total amount gained from the investment
Subtract investment cost from total return to get net profit
Divide net profit by investment cost
Multiply by 100 to get ROI percentage
Use the same time period for both cost and return
Compare ROI across different investments using the same method
A positive ROI means profit
A negative ROI means a loss