# Calculating roi percentage

An investor cannot evaluate any investment, whether it's a stock, bond, rental Because it is a percentage, ROI can clear up some of the confusion caused by just looking at dollar value returns. Imagine two of your friends. In simple terms, the ROI formula is: (Return – Investment) Investment. It's typically expressed as a percentage, so multiple your result by ROI calculations for. Here's a detailed explanation of how to calculate ROI for your of goods sold, using customer lifetime value, and using gross profit percentage. He writes the influential A VC , where this post was originally published. For instance, for a potential real estate property, investor A might calculate the ROI involving capital expenditure, taxes, and insurance, while investor B might only use the purchase price. Companies calculate these figures differently, so confirm the formulas your company uses — your finance team or accountant can guide you. Using ROI also helps you justify marketing investments. Sigh, I should have just stuck with Carter. ROI calculations for marketing campaigns can be complex — you may have many variables on both the profit side and the investment cost side. In these investments we are usually backing an entrepreneur we've gotten to know who delivers products to the market that we use and love.