What is a investment (ROI)?

Return on Investment (ROI) is a financial metric used to evaluate the efficiency or profitability of an investment. It is calculated by dividing the net profit from the investment by the initial cost of the investment, usually expressed as a percentage. A higher ROI indicates a more favorable investment performance, helping investors compare the profitability of different investments. ROI is a versatile tool applicable across various sectors to assess the potential return on various investment opportunities.