ROI

What does ROI stand for?

Return on investment

ROI, or return on investment, is a measure of how profitable an investment was. To calculate ROI, investors divide their profits by their initial investment amount, to produce an ROI percentage.

For example, if you invested $10,000 in your friend's brewery, and you received $12,000 in return, your ROI would be calculated as follows:

$2,000 in profit / $10,000 initial investment x 100 = 20%

Which is pretty good! It certainly beats banks' interest rates ...

Example

I'm looking for an ROI of at least 10%. Do you think you can provide that?
Some simple investments can yield high ROIs

Some simple investments can yield high ROIs

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Updated April 14, 2022

ROI definition by Slang.net

This page explains what the acronym "ROI" means. The definition, example, and related terms listed above have been written and compiled by the Slang.net team.

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