Help about ROI

Started by 7gspots 2017-06-16 at 13:29
3 replies to this topic
7gspots
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As the title say I dont understand what ROI is and how important it is, can anyone explain please?

Many thanks
HeikoB
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Posts: 122
heya there - well ROI means - Return Of Investment

what is ROI ?
well in the finance world it's a way to meassure of how your investment are doing. are you making money or are you lossing money.

How important is it?
Depends on your goal and time frame i guess, Clicking for fun or making money is more the question one should ask i guess

How to calculate ROI ?
Trust me when i say it depends on the factors you add in, like investment , time , % , days etc...

An Example:
invest = 100$
cashout = 50$

Formula (CashOut / Investments) this way of calculate ROI means anything above 100% are your earnings in %
1.a(50/100) = 50%
1.b(150/100)=150%
or
Formula (CashOut-Investment/Investment) - this gives you a negative % before positive ROI
1.a(50-100/100) = -50%
1.b(150-100/100)= 50%

both formula 1.a means you are 50% off to Brake even on your investment (BEI)
both formula 1.b means you a a profit of 50% of your investment - you earned 50 dollars +
« Last Edit: 2017-06-16 at 18:35 by HeikoB »
ncxn
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Posts: 431
ROI = Return Of Investment = (Net Profit / Cost of Investment) x 100
« Last Edit: 2017-06-17 at 04:43 by ncxn »