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Return on Investment
Simple and annualized ROI on a project or purchase.
Your numbers
$
$
Total ROI
64.0%
Value at the annualized rate
grows to $82K
- Net gain
- $32,000
- Annualized return
- 13.16%
- Payback multiple
- 1.64x
Return on investment ignores timing. Two projects can show the same ROI while one pays you back in a year and the other takes ten, which is why we usually look at IRR alongside it.
In plain English
Return on Investment explained simply
ROI answers one simple question: for every dollar I put in, how many dollars came back out?
For example
Spend $10,000 and get back $13,000. Your ROI is 30%, you earned $3,000 on top of what you spent.
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