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Today we’re taking a look at what Total ROI means and how it’s calculated.
Let’s dive in.
What is Total ROI?
Total ROI (Total Return on Investment) is a measure of the efficiency of an investment or a business venture. It is a method for calculating Return on Investment.
Not to be confused with Simple ROI, which is a simplified version of Total ROI and does not take into account the value of, for example time and money.
It is calculated by dividing the net gain (or profit) of the investment or venture by the cost of the investment or venture.
Total ROI is typically expressed as a percentage, and is used to measure the overall return on investment of a particular venture.
It is an important metric for businesses to measure the efficiency of their investments and ventures. By calculating the ROI of a particular venture, businesses can determine whether the venture is worth pursuing and whether they are making a good return on their investment.
How to Calculate Total ROI
Total ROI is calculated by dividing the net gain (or profit) of the investment or venture by the cost of the investment or venture. This is expressed as a percentage, which is the Total ROI.
For example, if an investment has a net gain of $500 and a cost of $1,000, the Total ROI would be 50% ($500/$1,000 = 0.5 = 50%).
Conclusion
Total ROI (Return on Investment) is a measure of the efficiency of an investment or a business venture. It is calculated by dividing the net gain (or profit) of the investment or venture by the cost of the investment or venture. It’s typically expressed as a percentage and is used to measure the overall return on investment of a particular venture.
Total ROI is an important metric for businesses to measure the efficiency of their investments and ventures. By calculating the Total ROI of a particular venture, businesses can determine whether the venture is worth pursuing and whether they are making a good return on their investment.
We hope you enjoyed this blog post about Total ROI. Feel free to leave any comments or questions below. Thank you for reading!
