Return on Investment
(ROI)
A measure of the gain or loss on an investment relative to its cost.
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What is ROI?
Return on Investment, or ROI, measures the gain or loss on an investment compared with the amount put in, usually shown as a percentage. A positive ROI means a gain, a negative one a loss.
What it does not tell you
It is a simple way to compare outcomes, but it looks backward and does not predict future results. ROI also does not, on its own, account for risk or the time an investment was held.