^{In partnership with}

Return on Investment

Return on Investment

AKA “ROI”

ROI is one of the key metrics in evaluating any investment. It allows comparison of different options and asset classes. Combined with a thorough risk and life situation analysis, it offers guidance and helps you choose. 

To calculate ROI, divide your net profit by the amount invested. Move the decimal two places to the right and add a percent sign and boom, you got it. Example: $40,000 profit on a $120,000 investment is 40,000 / 120,000 or .3 or 30%.

Surprisingly, this doesn’t tell the entire story. Check out the website or watch your inbox for other types of “returns” and the all important annualized return.