How To Calculate Return On Investment?

#Investing

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ROI = (Net Profit / Cost of Investment) × 100

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Net Profit = Total Return - Cost of Investment

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Identify the total amount invested

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Identify the total return earned from the investment

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Subtract the investment cost from the total return to get net profit

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Divide net profit by the investment cost

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Multiply the result by 100 to get ROI percentage

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Example: if you invest $1,000 and earn $1,200, net profit = $200

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Example ROI = ($200 / $1,000) × 100 = 20%

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