ROI = (Net Profit / Cost of Investment) × 100
Net Profit = Total Return – Cost of Investment
Identify the total amount invested
Identify the total amount gained from the investment
Subtract the investment cost from the total return to get net profit
Divide net profit by the investment cost
Multiply the result by 100 to get ROI as a percentage
Example: ROI = ((Return – Investment) / Investment) × 100
Example: If you invest 1,000 and get back 1,200, ROI = ((1,200 – 1,000) / 1,000) × 100 = 20%