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Author: Admin | 2025-04-28
No one likes math until math is about money. It’s a familiar scene: you’ve been saving for quite some time, maybe quit smoking or cut down on fast food, or went even as far as not throwing all your payroll into the Steam Summer Sale. One way or another, you find yourself now with some spare cash and a burning desire to invest.Let’s say, you buy Bitcoin for $10,000. Then what? You have two options. The first one is to sit and do nothing. Maybe pray that Elon Musk won’t tweet anything edgy (again) that will cause Bitcoin to drop. Or, following the second option, you can calculate the return on investment property like a pro. As scary as it may sound, it’s not beyond the capabilities of a person who knows how to push buttons on a calculator and reads this neat little guide.Table of ContentsWhat Is the Return on Investment (ROI)?How to Calculate Return on Investment (ROI)Here Is a Video on How to Calculate ROI ROI FormulaROI ExampleAn Alternative ROI CalculationHow to Calculate ROI for StartupHow to Calculate ROI for a Marketing CampaignWhat Is Annualized ROI?Comparing Investments and Annualized ROIHow to Calculate ROI in ExcelWhat Is the Return on Investment (ROI)?Investments in cryptocurrencies can bring high returns: according to coinmarketcap, Bitcoin brought its investors more than 29,000% ROI, and Ethereum — more than 107,000%. Why does this — a whatchamacallit — ROI exist, and how does it work?Return on investment, or ROI, is popular in different spheres, not only DeFi. Business sharks and business dolphins, marketers, startup entrepreneurs, real estate investors, and HR managers — all of them need a tool to predict profits. And the return on investment formula provides it. ROI metric is sometimes called a “quick-and-dirty method” because it’s an easy formula that can be calculated on a napkin. Nonetheless, it’s a widely known financial metric that is usually used before any serious investments.ROI is a formula that measures an investment’s performance, defining whether it’s efficient and profitable. It can be used to evaluate one or several different assets and compare them. Don’t confuse ROI with ROR, which stands for rate of return. Know the main difference: ROR can denote a period of time, but ROI does not do it. Abbreviations like ROMI and ROAS also stand for different calculations. A subtle but important thing to remember. How to Calculate Return on Investment (ROI)Unlike the last season of Game of Thrones, ROI calculations won’t shatter your expectations. They’re always the same and quite simple. This investment property is calculated to avoid mistakes that would lead to a waste of money. The calculation gives a clear idea of the efficiency level of your assets, providing an
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