Return On Investment

Economics Glossary – Malone Global University

Definition

Return on investment (ROI) measures how much profit or benefit is gained relative to the cost of an investment, commonly expressed as a percentage.

Why It Matters

ROI helps compare options and decide which projects or purchases create the most value per dollar spent.

Example

A $1,000 investment that earns $100 has an ROI of 10%.

Related Terms

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