# How do I calculate return on investment?

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## How do I calculate percentage return?

Take the gain or loss from the investment and divide it by the original amount or purchase price of the investment. Finally, multiply the result by 100 to arrive at the percentage change in the investment.

## What does 200% ROI mean?

The most common is net income divided by the total cost of the investment, or ROI = Net income / Cost of investment x 100. … Therefore, this particular investment’s ROI is 2 multiplied by 100, or 200%. Compare that to another example: An investor put \$10,000 into a venture without incurring any fees or associated costs.

## What is a 100 percent return?

Return on Investment (ROI) is the value created from an investment of time or resources. … If your ROI is 100%, you’ve doubled your initial investment. Return on Investment can help you make decisions between competing alternatives.

## What is the formula for total return?

How to Calculate Total Return. To calculate total return, first determine your cost basis for the asset or portfolio of assets in question. Subtract the current value of the investment from the cost basis, add the value of any income earnings. Take the resulting figure and multiply by 100 to make it a percentage figure

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## What is ROI example?

Return on investment (ROI) is calculated by dividing the profit earned on an investment by the cost of that investment. For instance, an investment with a profit of \$100 and a cost of \$100 would have a ROI of 1, or 100% when expressed as a percentage.

## What does 30% ROI mean?

A ROI figure of 30% from one store looks better than one of 20% from another for example. The 30% though may be over three years as opposed to the 20% from just the one, thus the one year investment obviously is the better option.

## Can a ROI exceed 100?

ROI (return on investment) reflects the profitability of your investments. The formula for calculating ROI and tips to increase it. … If this indicator is more than 100 % — your investments are bringing you profit if the indicator is less than 100% — your investments are unprofitable.

## What is a 300% ROI?

The minus sign indicates that we made less than the initial investment. The second example, with an investment of \$500 and a return of \$2000 gives an ROI of 300%. A common mistake when looking at ROI is to compare the initial investment with the revenue or sales generated rather than the profit generated.

## What is a 1000 return on investment?

The term “percent” means “per 100” so 1000% is 1000/100 = 10. Thus if one invests \$4000.00 and makes 1000% then the return would be 10*\$4000.00 = \$40 000.00.

## What is a 50% ROI?

Return on investment (ROI) is a profitability ratio that measures how well your investments perform. … For example, if you had a net revenue of \$30,000 and your investment cost you \$20,000, your ROI is 0.5 (or 50%). ROI = (gain from investment – cost of investment) / cost of investment. You write ROI as a percentage.

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## How many times is 1000 %?

“1000 percent” or “1000%” in a literal sense means to multiply by 10. In American English it is used as a metaphor meaning very high emphasis, or enthusiastic support.

## What does a 2X return mean?

A 2X is “wow, 200% return!” A 2X in 6 years is an IRR of 12.2%. Not quite as rosy because your money was tied up a pretty long time and bore a fair amount of risk to merely double. … The net after that subtraction is the true internal rate of return you earned over what you would have otherwise.)