ROI stands for “Return on Investment.” It is a financial metric used to measure the performance of an investment or to compare the efficiency of different investments.
ROI is calculated by dividing the net gain from an investment (the return) by the cost of the investment. The result is expressed as a percentage, so if an investment generates a return of $10 on an investment of $100, the ROI would be 10%.
ROI is widely used in business and finance to evaluate the potential or actual performance of investments, to compare the efficiency of different investment options, and to make investment decisions. It is a key measure of the profitability of an investment and provides a way to assess the risk and reward of different investment opportunities.