What Are Investment Returns?

ROI enables you to determine the profit or loss your investment has generated when you invest money in a business venture or an investment.

ROI= Cost of Investment/ Current Value of Investment−Cost of Investment

How to Calculate Return on Investment (ROI)?

Benefits of the ROI Formula

#1 Simple and Easy to Calculate

#2 Universally Understood

Limitations of the ROI Formula

#1 the ROI formula ignores the time factor

#2 the ROI formula is manipulable.

Common Mistakes Made During the Calculation of ROI

#1 Overestimation on Inverstment

#2 Overlook rental taxes

How to increase your ROI

Make analytics your friend

Know your market

Be willing to experiment

What are the types of marketing ROI?


Capital gains


Tools for the calculation of marketing ROI:

Google Analytics/Ads

CRM software

Call monitoring software



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