## How to calculate the return on investment?

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ROI is calculated by **subtracting the initial investment value from** the final investment value (which is equal to the net return), then divide that new number (net return) by the investment cost, then multiply it by 100.

## What does 30% ROI mean?

For example, an ROI of 30% from one store looks better than 20% from another. However, 30% may be over three years as opposed to 20% from just one year, so **annual investment** obviously is the better option.

## How to calculate ROI over the years?

The return on investment (ROI) is the ratio of the profit or loss for a financial year expressed as an investment and expressed as a percentage of the increase or decrease in the value of an investment for that year. The basic formula for the return on investment is: **ROI = Net Profit / Total Investment * 100.**

## How do I calculate the percentage return?

Take the profit or loss of an investment and divide it by the original amount or purchase price of the investment. Finally, **multiply the result by 100** to get the percentage change in your investment.

## Is 5 percent a good return on investment?

Safe investments

Historical returns on safe investments tend to decline **3%** up to 5%, but they are now much lower (0.0% to 1.0%) as they mainly depend on interest rates. When interest rates are low, safe investments bring lower returns.

## How To Get 20 Return On Investment?

You can achieve a 20 percent ROI by **using debts** to increase the success of your investments by investing in extremely high cash flow such as online business, or by becoming an expert on stock traders.