ROI stands for the return of investment. It is the amount of profit you get back from your investment. It is calculated by dividing the profit by the cost and multiplying by 100. Suppose that for every dollar spent on advertising we get ten dollars back (a 10% return), then:
Returns on investment are one of many metrics used to measure how profitable something has been. When investors compare ROI from different investments, they can make decisions about where to allocate their assets based on expected returns.
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