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What does return on investment mean?

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Anonymous

14y ago
Updated: 9/16/2019

Return on investment means that you initially invest money into something, say a company or a product and it is successful. Once they begin to make money, you would receive either your initial investment back or a portion of the sales from that item or business.

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Wiki User

14y ago

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What is the mean of ROI in stock market?

return on investment


How do you Calculate a Return on an Investment?

The return on investment formula:ROI=(Gain from Investment - Cost of Investment)/Cost of Investment.


What is the difference between rate of return and return on investment?

The rate of return is a percentage that shows how much an investment has gained or lost over a specific period, while the return on investment is a ratio that compares the profit of an investment to its cost.


How is ROI or return on investment calculated?

Return on investment is calculated by subtracting investment capital from the return, taking into account inflation, taxation and the time frame involved.


How can I calculate the rate of return on my investment?

To calculate the rate of return on your investment, subtract the initial investment amount from the final value of the investment, then divide that result by the initial investment amount. Multiply the result by 100 to get the rate of return as a percentage.


How do you calculate the rate of return on an investment?

To calculate the rate of return on an investment, you subtract the initial investment amount from the final value of the investment, then divide that result by the initial investment amount. Multiply the result by 100 to get the percentage rate of return.


How can one calculate the holding period return for an investment?

To calculate the holding period return for an investment, subtract the initial investment amount from the final investment value, then divide by the initial investment amount. Multiply the result by 100 to get the percentage return.


Return On Investment in fmcg?

Return on investment is the amount that you get back for investing in something. The formula is ROI=(Profit *100)/(Investment * number of years.)


What factors affect the rate of return of an investment at maturity?

What factors affect the rate of return of an investment at maturity?


Return on investment and safety of investment?

Return on investment is the amount of profit on the invested money after deducting taxes, safety of investment is the risk factor involved in the investment. Such as risk is high safety of investment is less.


When a corporation weighs its return on investment for initiating a new project against the minimum standard investment return it has set before it the minimum standard investment return is referred t?

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Is return of investment an income acct?

Yes the amount would be a taxable income amount after your return of investment amounts exceed your cost basis in the investment.