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ROI Calculator
ROI calculator is a kind of investment calculator that enables you to estimate the profit or loss on your investment.
ROI, or Return on Investment, is like a tool that helps estimate how much value an investment might bring over time.
It's handy for figuring out if you'll gain or lose money.
If you're an investor, ROI is like a measuring stick that can help you decide if a new investment is worth the risk or check how well your past investments have done.
It's a cool way to make smarter money decisions!
Determining ROI can be approached in a couple of ways.
The basic ROI computation involves dividing the profit by the initial investment and then multiplying the outcome by 100.
Formula: (Profit / Initial Investment) x 100 = ROI
For example, if you invested $1,000 and yielded a return of $1,500 (a profit of $500), your ROI would be: ($500 / $1,000) x 100 = 50% ROI
What constitutes a 'good' ROI varies depending on factors like industry, risk level, and market conditions.
Generally, a higher ROI is better, but it's important to compare ROIs within similar investments or industries for meaningful evaluation.
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