Finances · Glossaire
What is ROI (Return on Investment)?
Définition rapide
A percentage that measures the gain or loss of an investment relative to its cost. Higher ROI = better investment.
Explication complète
ROI (Return on Investment) measures the efficiency of an investment: (Gain − Cost) / Cost × 100. A stock bought for $100 and sold for $150 has 50% ROI. ROI is the simplest investment metric and works for any time period, but does not account for time. Two investments with the same 50% ROI — one held for 1 year, another for 5 — are NOT equal. For multi-year comparisons, use CAGR (Compound Annual Growth Rate) instead. ROI is also used in marketing to evaluate campaigns: a $1,000 ad spend that generated $3,000 in sales has 200% ROI. Always check whether ROI is "gross" or "net of costs."
Calculatrices liées
Calculators that use or explain ROI.
Termes liés
More from Finances
APR (Annual Percentage Rate)
The yearly cost of a loan, expressed as a percentage, including most fees. Used when borrowing money.
APY (Annual Percentage Yield)
The yearly return on a deposit or investment, including the effect of compounding. Used when saving money.
Compound Interest
Interest calculated on the initial principal AND on the accumulated interest from previous periods. The engine of long-term wealth.
Simple Interest
Interest calculated only on the original principal, not on accumulated interest. Used in short-term and consumer loans.
Principal
The original sum of money borrowed or invested, not including interest. The base on which interest is calculated.
Amortization
Spreading loan payments over time so each payment covers both principal and interest, with the loan fully paid off at the end.
Last reviewed: June 15, 2026 • Category: Finances