Return On Investment (ROI) formula

Hello Aviators,

As a managerial process, we need to calculate the Return On Investment percentage before taking any capital investment decision. The formula to calculate the Return On Investment (ROI) is:

ROI = [ (Earned Value – investment value) / investment value ] * 100

For example, our earned value from a project is 23M$ and investment amount which includes resources, efforts and time is: 20M$. Then,

ROI = [(23-20)/20] * 100

ROI = 15%
Catch you later…. Cheers!!!