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Finance

ROI

Return On Investment

How much you gained (or lost) on something compared with what it cost you, as a percentage.

Example

Spend ₹1,00,000 and earn back ₹1,50,000 → a 50% ROI.

Formula

ROI = (Gain − Cost) ÷ Cost × 100

Related terms

ROAS
How much revenue each rupee of advertising brings back. A ROAS of 4 means ₹4 earned for every ₹1 spent.
CAC Payback Period
How long it takes to earn back the money you spent acquiring a customer. Shorter is better — you recover cash faster.

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