Sound Smart in Meetings

The Marketing Glossary

ROI

| ROI |

What is ROI?

Return on investment is an important metric in business. It measures the efficiency of an investment by calculating the return (or benefit) of an investment relative to the investment’s original cost. ROI is represented as a percentage.

How do you calculate ROI?

To calculate ROI, subtract the cost of the investment from the return of the investment, then divide that number by the original cost of the investment. For example, an investment that returns $50,000 and costs $10,000 would have an ROI of 400%.