Definition
Return on investment
Return on investment, usually shortened to ROI, is the profit from an investment divided by the amount invested, expressed as a percentage.
On its own ROI says nothing about time or risk. A 40% return over four months and a 40% return over four years are very different results, which is why the annualised figure matters.
Tools that use this term
ROI Calculator
Return on investment: profit, ROI percentage and how long the money is tied up.
Property ROI Calculator
Total return on a property: rental profit plus capital growth, and the annualised rate.
Compound Interest Calculator
What a starting amount plus regular deposits grows into, and how much of it is interest.