Return on investment (ROI) is calculated using the formula (Net income / Cost of investment) x 100.
A return on investment or return on costs is a ratio between net income and investment.
The formula for return on investment (ROI) is given as;
ROI = (Net income / Cost of investment) x 100
A high return on investment means the investment's gains compare favorably to its cost. It is often used to measure the performance of an investment.
Thus, Return on investment (ROI) is calculated using the formula (Net income / Cost of investment) x 100.
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