ROI (Return on Investment)
A performance measure that calculates the relative gain or loss on an investment relative to its cost.
ROI (Return on Investment) measures how much you gain (or lose) relative to what you invested.
Formula
ROI = (Net gain / Investment cost) × 100Example
Buy shares for €1,000, sell for €1,300 → ROI = (300/1000) × 100 = 30%
ROI doesn’t account for time — which makes it useful for quick comparisons, but for long-term investments CAGR (Compound Annual Growth Rate) gives a more complete picture.