Dubai Property Updates: Return on Investment ROI explanation
ROI stands for “Return on Investment.” It is a financial metric used to evaluate the profitability or performance of an investment or business venture. ROI is expressed as a percentage and is calculated by dividing the net gain or profit from the investment by the initial cost or investment amount. The formula for ROI is:
ROI (%) = [(Net Gain from Investment) / (Initial Investment)] x 100
In simpler terms, ROI measures how much money you’ve made or lost on an investment in relation to the initial amount you invested. A positive ROI indicates a profitable investment, while a negative ROI indicates a loss. ROI is a widely used metric in finance and business to assess the efficiency and effectiveness of investments and to make informed decisions about where to allocate resources.