๐ What is ROI?
Return on Investment (ROI) is a simple ratio that compares the gain from an investment to its cost. The formula is: ROI = (Current Value - Cost) / Cost ร 100.
๐ Why it Matters
ROI allows you to compare different types of investments on a level playing field. Is your 5% CD better than a rental property that yields 7%? ROI gives you the answer.
- ๐ Positive ROI: You made money.
- ๐ Negative ROI: You lost money.
๐ก Don't Forget Expenses: For a true ROI, subtract maintenance, taxes, and fees from your "Current Value" before calculating. Check our ROI Calculator for a detailed breakdown.
Calculate Your ROI โ