What is roi?

Return on Investment, commonly shortened to ROI, is a simple metric used to measure how profitable an investment is compared to its cost. When people ask, “what is ROI,” “what does ROI mean,” or “what is an ROI,” they’re referring to how much value or profit they received back from the money they spent.

ROI helps advertisers, businesses, and marketers evaluate whether a campaign or project is worth continuing.

To answer “how do you calculate ROI,” the formula is straightforward:

• ROI = (Net Profit ÷ Cost of Investment) × 100.

This percentage shows how effectively your budget is working.