What is ROI? ROI is an acronym for Return on Investment.
What is Return on Investment?
To calculate ROI, use this ROI formula:
ROI % = ( Total Gain / Original Investment Value ) x 100
Total Gain = Current Value - Original Investment Value
Simple Annualized ROI % = ROI % / Life of the Invesment
Example: $100,000 invested 3.5 years ago now has a value of $132,000:
Total Gain, or Loss = $132,000 - $100,000
Total Gain, or Loss = $ 32,000
ROI % = ( $32,000 / $100,000 ) x 100
ROI % = 32%
Simple Annualized ROI % = 32% / 3.5
Simple Annualized ROI % = 9.14%
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