ROI

What is ROI?

Return on Investment (ROI) is a widely used metric that evaluates how profitable an investment is.

It helps investors or marketers determine how much profit was made compared to the amount spent, offering insight into the effectiveness of a campaign or project.

The formula for calculating ROI is:

ROI = (Net Profit / Investment Cost) × 100

For example, if you spend $1,000 on an ad campaign and it generates $3,000 in revenue:

ROI = (($3,000 - $1,000) / $1,000) × 100 = 200%

This means the campaign returned $2 for every $1 invested, indicating a strong and profitable outcome.

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