What is ROI?

ROI (Return on Investment) is a measure of the amount of money an investor gets from a particular investment. This not only applies to your company’s shareholders, but to all investors in anything; for example, investing in marketing in order to derive a return on that investment. To calculate it, the investor subtracts the amount they paid for the investment (the original cost)  from the current value of the investment and then divides that amount by the original cost of the investment. Generally, the more risky an investment is, the higher the ROI will be. 

For more information on this topic, check out this article from our friends at Investopedia.

https://www.investopedia.com/terms/r/returnoninvestment.asp#:~:text=Return%20on%20investment%20(ROI)%20is,a%20number%20of%20different%20investments.&text=To%20calculate%20ROI%2C%20the%20benefit,the%20cost%20of%20the%20investment.