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

    How to Calculate the ROI of a Rental Property

    The return on a real estate investment can vary greatly, depending on how the property is financed, the rental income, and the costs involved.
  2. Small Business

    How to calculate the return on investment (ROI) of a marketing campaign

    Learn to make the most of your marketing spending. Know how to measure its results by calculating the return on investment (ROI) of a campaign.
  3. Investing

    How to calculate ROI for real estate investments

    Calculating return on real estate investments can be difficult. We help you figure it out.
  4. Tech

    How to Calculate ROI in Excel

    Daniel Jassy, CFA, shows how to calculate ROI in Excel.
  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

    Return on investment versus internal rate of return

    Read about the similarities and differences between an investment's internal rate of return (IRR) and its return on investment (ROI).
  8. Insights

    Taxpayer ROI: Better in Red States Than in Blue

    Whether you live in a red or blue state can influence how well government agencies manage the tax dollars you're handing over.
  9. Investing

    4 Key Factors To Building A Profitable Portfolio

    Buying stocks is a careful balance of risk and reward. Learn to identify your risk tolerance and financial goals with these fundamental tips.
  10. Personal Finance

    Is There ROI When Millennials Live at Home?

    If you love your adult kids and enjoy the time with them, don’t worry that you’re spending too much money on them. Your return on investment is worth it.
Hot Definitions
  1. Working Capital

    Working capital, also known as net working capital is a measure of a company's liquidity and operational efficiency.
  2. Bond

    A bond is a fixed income investment in which an investor loans money to an entity (corporate or governmental) that borrows ...
  3. Compound Annual Growth Rate - CAGR

    The Compound Annual Growth Rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer ...
  4. Net Present Value - NPV

    Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows ...
  5. Price-Earnings Ratio - P/E Ratio

    The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing a company that measures its current share price relative ...
  6. Internal Rate of Return - IRR

    Internal Rate of Return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.
Trading Center