Next video:
Loading the player...

Return on investment allows an investor to evaluate the performance of an investment and compare it to others in his or her portfolio. Find out how to calculate ROI and how to use to your advantage.

Related Articles
  1. Investing

    FYI On ROI: A Guide to Calculating Return on Investment

    Return on investment is a simple equation that can give you an edge when fine-tuning your portfolio - here's how to use it.
  2. Managing Wealth

    How to Calculate ROI For Real Estate Investments

    When it comes to real estate investments, there are two important ROI calculations to know.
  3. Investing

    How to Calculate the ROI of Rental Property

    The return on a real estate investment can vary greatly, depending on how much of the building you own.
  4. Investing

    How To Calculate ROI For Real Estate Investments

    Calculating return on real estate investments can be difficult. We help you figure it out.
  5. Personal Finance

    College Tuition vs. Investing: Is It Worth It?

    With the rising cost of college and questionable career prospects awaiting college graduates, some are wondering if a college education is still worth it.
  6. Insights

    Movie Genres That Make The Most Money

    Success in Hollywood isn't just measured by ticket sales - development costs play a large part, too.
  7. Investing

    3 Ways To Evaluate the Performance of Alternatives

    Learn about three ways to measure the performance of alternative investments. See how the commonly used Sharpe ratio has drawbacks in measuring volatility.
  8. Tech

    How to Increase ROI with Financial Planning Software

    Here are five strategies to increase ROI via financial planning software in the wake of the fiduciary rule.
  9. Investing

    5 Stock Market Metrics Explained

    Learn how to evaluate a company's performance using metrics such as ROE, EPS and P/E ratio.
  10. Investing

    Return on Investment (ROI) Vs. Internal Rate of Return (IRR)

    Read about the similarities and differences between an investment's internal rate of return (IRR) and its return on investment (ROI).
Hot Definitions
  1. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying ...
  2. Expense Ratio

    A measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual ...
  3. Mezzanine Financing

    A hybrid of debt and equity financing that is typically used to finance the expansion of existing companies. Mezzanine financing ...
  4. Long Run

    A period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all ...
  5. Quasi Contract

    A legal agreement created by the courts between two parties who did not have a previous obligation to each other. A normal ...
  6. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
Trading Center