# ROI Calculator

## What is ROI?

ROI or as it is sometimes known as the Return on Investment happens to be an investor’s benefit which results from the investment of some or the other resource. When we say that there is high ROI or the rate of investment then it means that the investment gains favour the investment cost.

## Return on Investment(ROI) Calculator

 Cost of Investment: Gain from Investment: ROI:

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Hence, this ROI or the return of investment is generally used as a performance measure which assists in evaluating efficiency of the investment or it is also put in to use to compare efficiency of a number of (various) investments. In other words, this is also one of the methods through which we can know the profits when the capital is invested.

## How is ROI calculated?

As we have stated above that this return of investment turns out to be a measure to check the profits when compared to the investment thus, to calculate this ROI, the return or in other terms, the benefit of investment is usually divided by the cost of investment. One will be able to understand it better when they check the formula given below.

$$ROI = \frac{(Gain \quad from \quad investment – Cost \quad of \quad investment)}{Cost \quad of \quad investment}$$