ROI
Return on investment
Example
I'm looking for an ROI of at least 10%. Do you think you can provide that?
Related Slang
EBT | Earnings before taxes |
ISO | Incentive stock option |
NSO | Non-qualified stock option |
NQSO | Non-qualified stock option |
CEO | Chief executive officer |
CFO | Chief financial officer |
P/E | Price-to-Earnings Ratio |
EPS | Earnings per share |
Retail investor | Individual, non-professional investor |
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 ...