Return on Investment

Overview

What if you could measure the true value of every business decision? Return on Investment, or ROI, is the key metric that helps you do just that.

Key Components

Used across industries, ROI tells you whether an investment is worth the cost by comparing net profit to the initial expense. Visualized as a simple formula, ROI is calculated by subtracting the cost from the gain, dividing by the cost, and multiplying by 100.

How to Apply

To apply it, track your gains and costs, plug the numbers into the formula, and interpret the result—positive means profit, negative means loss. In a world full of choices, ROI gives you clarity, helping you make smarter, more profitable decisions.

Key Insight