[{"data":1,"prerenderedAt":289},["ShallowReactive",2],{"term:roi":3},{"term":4,"related":280},{"id":5,"title":6,"body":7,"category":263,"description":264,"extension":265,"faq":266,"meta":267,"navigation":268,"path":269,"related":270,"seo":273,"stem":274,"takeaways":275,"__hash__":279},"terms\u002Fterms\u002Froi.md","Return on Investment (ROI)",{"type":8,"value":9,"toc":256},"minimark",[10,15,19,22,26,249,253],[11,12,14],"h2",{"id":13},"understanding-return-on-investment","Understanding Return on Investment",[16,17,18],"p",{},"ROI expresses profit as a percentage of what was invested. It is simple and works for almost any investment.",[16,20,21],{},"Plain ROI ignores time. To compare investments held for different periods, use an annualized return.",[11,23,25],{"id":24},"formula","Formula",[27,28,31],"span",{"className":29},[30],"katex-display",[27,32,35,86],{"className":33},[34],"katex",[27,36,39],{"className":37},[38],"katex-mathml",[40,41,44],"math",{"xmlns":42,"display":43},"http:\u002F\u002Fwww.w3.org\u002F1998\u002FMath\u002FMathML","block",[45,46,47,81],"semantics",{},[48,49,50,54,58,74,77],"mrow",{},[51,52,53],"mtext",{},"ROI",[55,56,57],"mo",{},"=",[59,60,61,72],"mfrac",{},[48,62,63,66,69],{},[51,64,65],{},"Final value",[55,67,68],{},"−",[51,70,71],{},"Cost",[51,73,71],{},[55,75,76],{},"×",[78,79,80],"mn",{},"100",[82,83,85],"annotation",{"encoding":84},"application\u002Fx-tex","\\text{ROI} = \\frac{\\text{Final value} - \\text{Cost}}{\\text{Cost}} \\times 100",[27,87,91,120,239],{"className":88,"ariaHidden":90},[89],"katex-html","true",[27,92,95,100,108,113,117],{"className":93},[94],"base",[27,96],{"className":97,"style":99},[98],"strut","height:0.6833em;",[27,101,105],{"className":102},[103,104],"mord","text",[27,106,53],{"className":107},[103],[27,109],{"className":110,"style":112},[111],"mspace","margin-right:0.2778em;",[27,114,57],{"className":115},[116],"mrel",[27,118],{"className":119,"style":112},[111],[27,121,123,127,230,233,236],{"className":122},[94],[27,124],{"className":125,"style":126},[98],"height:2.0574em;vertical-align:-0.686em;",[27,128,130,135,226],{"className":129},[103],[27,131],{"className":132},[133,134],"mopen","nulldelimiter",[27,136,138],{"className":137},[59],[27,139,143,217],{"className":140},[141,142],"vlist-t","vlist-t2",[27,144,147,212],{"className":145},[146],"vlist-r",[27,148,152,169,180],{"className":149,"style":151},[150],"vlist","height:1.3714em;",[27,153,155,160],{"style":154},"top:-2.314em;",[27,156],{"className":157,"style":159},[158],"pstrut","height:3em;",[27,161,163],{"className":162},[103],[27,164,166],{"className":165},[103,104],[27,167,71],{"className":168},[103],[27,170,172,175],{"style":171},"top:-3.23em;",[27,173],{"className":174,"style":159},[158],[27,176],{"className":177,"style":179},[178],"frac-line","border-bottom-width:0.04em;",[27,181,183,186],{"style":182},"top:-3.677em;",[27,184],{"className":185,"style":159},[158],[27,187,189,195,199,203,206],{"className":188},[103],[27,190,192],{"className":191},[103,104],[27,193,65],{"className":194},[103],[27,196],{"className":197,"style":198},[111],"margin-right:0.2222em;",[27,200,68],{"className":201},[202],"mbin",[27,204],{"className":205,"style":198},[111],[27,207,209],{"className":208},[103,104],[27,210,71],{"className":211},[103],[27,213,216],{"className":214},[215],"vlist-s","​",[27,218,220],{"className":219},[146],[27,221,224],{"className":222,"style":223},[150],"height:0.686em;",[27,225],{},[27,227],{"className":228},[229,134],"mclose",[27,231],{"className":232,"style":198},[111],[27,234,76],{"className":235},[202],[27,237],{"className":238,"style":198},[111],[27,240,242,246],{"className":241},[94],[27,243],{"className":244,"style":245},[98],"height:0.6444em;",[27,247,80],{"className":248},[103],[11,250,252],{"id":251},"example","Example",[16,254,255],{},"Invest $1,000 and sell for $1,250: ROI is 25%.",{"title":257,"searchDepth":258,"depth":258,"links":259},"",2,[260,261,262],{"id":13,"depth":258,"text":14},{"id":24,"depth":258,"text":25},{"id":251,"depth":258,"text":252},"investing","The gain or loss on an investment relative to its cost.","md",[],{},true,"\u002Fterms\u002Froi",[271,272],"compound-interest","capital-gain",{"title":6,"description":264},"terms\u002Froi",[276,277,278],"ROI is profit divided by cost.","It ignores how long the money was invested.","Annualized return makes different time periods comparable.","nH7izAHfI4kclEGxbxJQqahNeBP-2NPpuAlOqrXnkes",[281,285],{"title":282,"description":283,"path":284},"Capital Gain","The profit from selling an asset for more than its purchase price.","\u002Fterms\u002Fcapital-gain",{"title":286,"description":287,"path":288},"Compound Interest","Interest earned on both the original principal and on interest already earned.","\u002Fterms\u002Fcompound-interest",1793226379248]