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Return of Investment (ROI)

Created by Arthur Aslanyan (Nafta College), last modified on Apr 03, 2020

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Ratio of cash proceeds over amount of initial investment:

$\begin{array}{l}\displaystyle \rm ROI = \frac{Cash \ Proceeds}{Initial \ Investment}\end{array}$

Usually denoted as multiplier of Initial Investment:

1X	Cash proceeds are equal to Initial Investment
2X	Cash proceeds are twice higher than Initial Investment
3X	Cash proceeds are three times higher than Initial Investment
...	...

See also

Economics / Investment / Financial Investment

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