Back to glossaryInvestment & Finance

What is ROI (Return on Investment)?

A performance measure used to evaluate the efficiency of an investment. Calculated as (Gain from Investment - Cost of Investment) / Cost of Investment.

Also searched as

investment returnprofitabilityfinancial performance

Related terms in Investment & Finance

Venture Capital
Angel Investor
Series A, B, C Funding
Valuation
Exit Strategy

Explore the full business glossary

68+ definitions for founders — finance, legal, marketing, HR, and strategy.

View all terms

We value your privacy

We use cookies and similar technologies that are necessary to run our site, plus optional analytics, marketing, and preference cookies to improve your experience and measure campaigns. You can accept all, reject non-essential cookies, or customize your choices at any time.

California residents: see our Privacy Policy for information about your rights and choices (CCPA-style disclosures).