Finance & Moneybeginner
ROI
Return on Investment
Definition
A measure of how much profit or value you gained relative to what you invested. ROI = (Net Gain ÷ Investment Cost) × 100.
Why it matters
ROI helps you evaluate whether money spent on ads, tools, staff, or courses is actually working. It is the fundamental question behind every business decision.
Example
You invest £1,000 in a Facebook ad campaign and generate £4,000 in sales. Net gain is £3,000. ROI = (£3,000 ÷ £1,000) × 100 = 300%.
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