LeoGlossary: Return On Investment (ROI)

6 mo (edited)
1 Min Read
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A calculation used to determine the expected return of a project in comparison to the cost of the investment. This is normally expressed as a percentage, typically either APR or APY.

This can be done before investing to determine if it is a worthwhile venture to get involved with.

ROI = [ Income - cost/cost ] * 100

It is a concept that is applicable to both fixed income instruments as well as those of the speculative nature. It can also apply to real estate investments.


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