ROI = (Net Profit / Cost of Investment) × 100
Net Profit = Total Return – Total Investment Cost
Identify the total amount invested
Identify the total return received
Subtract investment cost from total return to get net profit
Divide net profit by investment cost
Multiply the result by 100 to get ROI percentage
Example: ROI = [(Return – Cost) / Cost] × 100
Example: If you invest 1,000 and get back 1,250, ROI = (250 / 1,000) × 100 = 25%