ROI is the most universal metric to judge any financial decision.
The Formula
$$ROI = \frac{\text{Net Profit}}{\text{Cost of Investment}} \times 100$$
When to Use ROI
- Evaluating a paid marketing campaign
- Comparing two investment options
- Deciding whether to hire a new employee
Annualized ROI (for multi-year investments)
$$\text{Annualized ROI} = (1 + ROI)^{1/n} - 1$$
👉 Calculate any investment's ROI instantly at ROI Calculator on Global Info Wiki.
A 20% ROI in 2 years = only 9.5% per year — always annualize before comparing!
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