return on investment

/ˈrɛtɜːn ɒn ɪnˈvɛstmənt/

profit or gain from an investment

The company calculated a 15% return on investment from its new project.

This means the project generated a 15% profit relative to the initial investment.

Finance

formal

The financial gain or profit generated from an investment relative to the amount invested.

Real estate often provides a steady return on investment over time.

Investing in property typically yields consistent profits.

Stocks with high returns on investment also carry higher risks.

Higher profits from stocks usually come with greater uncertainty.

ROI is commonly expressed as a percentage or ratio.

Collocations

calculate return on investmentto determine the profit from an investmentmaximize return on investmentto increase the profit from an investment

a method to compare costs and benefits of an investment

the current value of future cash flows

ROI helps investors decide whether an investment is worth the risk.

Always use consistent time periods and include all costs when calculating ROI.

Derived from financial terminology, combining 'return' (profit) and 'investment' (capital put into an asset).

ROI is a key metric in finance and business to evaluate the efficiency of investments.

return

profit or gain

root

relative to

preposition

investment

money or resources put into an asset

root

English Dictionary