Basic Roi Calculation
ROI means return on investment. When a person invests their money in shares, bonds, mutual funds and/or even in property, the expectation is that they should have some kind o return on it. |
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This return may be a monthly income or a whole some amount at the end of the sale. However, when the return on investment is defined, it has a time period attached to it.So, basically a return of investment can be defined as the amount that is obtained by selling of the investment property at the end of a stipulated period of time. The amount can be divided in the form of a monthly income or a wholesome amount. For example, if you have invested money in shares, then if the company is paying you a monthly dividend, then it means that you are getting a monthly return on investment.
There are several software and tools that are available online to calculate the return on investment. They are very easy to use and by simply typing in some numbers, you can easily get the return on your investment. Several people maintain online portfolios these days, and they need to know frequently how their portfolio is doing. This can be done on calculating the ROI. Most of the online web portfolio software do this automatically for you and give the results.
The basic ROI calculation depends on several factors like the total amount of the investment, the time period you have held the investment for and the current market rate. When you have these details, then you can easily calculate the ROI. Here is a simple formula for calculating the basic ROI:
ROI is equal to the gain from investment minus cost of investment, and the resultant figure is divided by the cost of investment.
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Basic Roi Calculation
