To calculate the rate of return on investment (ROI), you need to divide the profit by the initial investment and then multiply the result by 100 to express it as a percentage.
The ROI is an important indicator of the profitability of an investment. To determine the ROI, start by calculating the profit generated from the investment. This involves subtracting the initial investment amount from the final amount received. For instance, if you invested £100 and later received £150, your profit would be calculated as follows:
Profit=£150−£100=£50Next, divide the profit by the initial investment. In this example, you would divide the profit of £50 by the initial investment of £100:
£100£50=0.5To convert this decimal into a percentage, multiply by 100:
0.5×100=50%Thus, the rate of return on your investment is 50%.
In formula form, the calculation can be expressed as:
ROI=(Initial InvestmentProfit)×100This formula provides a clear understanding of how much profit you have made in relation to the initial amount invested. It serves as a valuable tool for comparing the profitability of various investments. For example, if another investment yielded a 30% ROI, you could easily see that your investment with a 50% ROI was more profitable.
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100% |
|---|
Professional Tutors |
| All of our elite tutors are full-time professionals, with at least five years of tuition experience and over 5000 accrued teaching hours in their subject. |
Global |
International Tuition |
| Based in Cambridge, with operations spanning the globe, we can provide our services to support your family anywhere. |
97% |
Independent School Entrance Success |
| Our families consistently gain offers from at least one of their target schools, including Eton, Harrow, Wellington and Wycombe Abbey. |
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