Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment.
The Formula
The basic formula is:
ROI = (Net Profit / Cost of Investment) x 100
For example, if you spend $1,000 on an ad campaign and it generates $1,500 in sales, your net profit is $500. Your ROI is 50%.
Advanced Tracking
For more complex financial planning, especially over time, you should account for compounding. You can use our Compound Interest Calculator to project long-term ROI on stocks or mutual funds.