investing
return on investment
A performance measure used to evaluate the efficiency of an investment, expressed as a percentage of the original cost.
Example
"Her investment of $10,000 grew to $13,000, giving her an ROI of 30%."
💡 Memory Tip
ROI = Return On Investment. What RETURNS to you ON your INVESTMENT.
Etymology
Return (the gain received) + on + investment (the money put in) — what you get back relative to what you put in.
Common Misspellings
return on investementreturn on investmntreturn of investment
Related Terms
See Also
performance