What are some examples of ROI calculation?
ROI, or Return on Investment, measures the profitability of an investment. For example, if you invest $1,000 in a marketing campaign and earn $1,500 in revenue, your ROI would be 50%.
Can you explain how to calculate it step by step?
Sure! To calculate ROI, use the formula: ROI = (Net Profit / Cost of Investment) x 100. First, determine your net profit by subtracting the cost of the investment from the total revenue.
What if my investment cost was $2,000 and I made $3,000?
In that case, your net profit would be $3,000 - $2,000 = $1,000. Plugging that into the formula: ROI = ($1,000 / $2,000) x 100 = 50%.
Are there different types of ROI calculations?
Yes, there are several types, including marketing ROI, social ROI, and financial ROI, each tailored to specific contexts.
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