PMP Formula: Return on Investment

PMP Formula Return On Investment (ROI)

Return on Investment (ROI) is the measurement of profit or loss gained through an investment based on the amount invested. Return on Investment (ROI) is calculated in terms of percentage and helps in making the financial decisions. It is used to measure the profitability of a business or company or to compare the efficiency and profitability of different investments. Equation: Return on Investment (ROI) = (Net Profit ÷ Investment Cost) * 100

Formula Definition
ROI Return on Investment
= (Net Profit ÷ Investment Cost) * 100
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