Investopedia Video: How To Calculate Return On Investment (ROI)

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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.

For more on different ROI ratios, and how to use them — check out;

FYI On ROI: A Guide To Calculating Return On Investment
http://www.investopedia.com/articles/basics/10/guide-to-calculating-roi.asp

How To Calculate ROI For Real Estate Investments
http://www.investopedia.com/articles/basics/11/calculate-roi-real-estate-investments.asp

Find Quality Investments With ROIC
http://www.investopedia.com/articles/fundamental/03/050603.asp

CFA Level 1 Exam Prep: Financial Ratios – Return On Investment Ratios
http://www.investopedia.com/exam-guide/cfa-level-1/financial-ratios/return-investment-ratios.asp

12 thoughts on “Investopedia Video: How To Calculate Return On Investment (ROI)”

  1. This really helped me understand what ROI is but the example is kinda a scary scenario for the kids. If Joe would have been my father I would have kept all the money at that young age. 😉

  2. What if the children do not use all the 100 dollars to generate profit? Is ROI still the same as the ROI based on the typical formula?

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