Accessibility Menu

What Is Return on Investment (ROI)?

By Benjamin LockeUpdated May 30, 2025 at 11:12 AM

Key Points

  • ROI measures investment growth efficiency, calculated as Profit/Cost.
  • Using ROI, investors compare asset performance to optimize financial strategies.
  • Unlike ROI, IRR and ROE include factors like cash flow timing and equity value.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.