Wondering what "ROI" (Return on Investment) means? This short reference explains it in plain terms.
ROI measures the gain or loss from an investment relative to its cost, expressed as a percentage. It is a basic yardstick of profitability.
What is ROI?
ROI measures the gain or loss from an investment relative to its cost, expressed as a percentage. It is a basic yardstick of profitability.
| Full form | Return on Investment |
|---|
Where it is used
- Evaluating investments
- Comparing projects
Why ROI matters
ROI shows up in real filings, forms and transactions, so knowing what it means helps you complete them correctly and avoid errors, rejections or penalties. When in doubt about how ROI applies to you, confirm on the official portal or with a qualified professional before filing.
Frequently asked questions
What is the full form of ROI?
ROI stands for Return on Investment.
What is ROI used for?
Evaluating investments; Comparing projects.