Return on Investment (ROI) Calculator
|Investment Length||6.74 years|
By definition, return on investment (ROI) = (investment gain - investment cost) / investment cost. ROI is a performance measurement of investments, indicating the investment efficiency. The annualized ROI rate is normally more meaningful for comparison. In real life, the investment risk and other situations are not reflected in the ROI rate. So, even though higher annualized ROI is preferred, it is not uncommon to see lower ROI investments are favored for their lower risk or other favorable conditions. Many of the time, ROI cannot be directly measured, such as the investment of advertising a product. The ROI in such situations are normally estimated via the marginal sales benefit or brand recognition.