Return on investment measures the gain or loss relative to the amount invested.
| Input | What it means |
|---|---|
| Amount Invested | Use the measured or stated value for this item, with the unit or category shown beside the field. |
| Amount Returned | Use the measured or stated value for this item, with the unit or category shown beside the field. |
| Investment Length | The measured end-to-end distance of the section being calculated. |
Investing 1,000 and receiving 1,200 gives a gain of 200 and ROI of 20%.
Compare the result with the underlying statement, budget or proposed transaction. It is most useful when every amount uses the same reporting period and the same accounting definition.
Use one consistent period for every amount and rate in the relationship. If a form specifies an annual rate or a monthly amount, follow that label rather than mixing time periods.
Only the costs and taxes represented by the inputs and formula are included. A real transaction can include other charges, so compare the estimate with the underlying agreement or statement.
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