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 ...


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

Related Slang


Updated April 14, 2022

ROI definition by

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