Understanding ROI

ROI, or Return on Investment, is a very common analysis technique for determining what the percentage return on an investment will be.  ROIs are commonly used by business practitioners and individuals to assess whether or not an investment is worthwhile.  The standard equation for ROI is:

ROI= Earnings – Initial Investment

Initial Investment

ROIs are typically expressed as a percentage, which helps the calculator determine if the investment is beneficial for the organization.  ROI is very beneficial when determining the success of a marketing campaign or advertising strategy.  Connect with us if you need help.