ROI (Return on Investment) means how much profit you made compared to the money you invested.
Simple Formula
ROI = (Profit / Investment) × 100
Example
If you invested $100 and earned $120,
profit = 120 − 100 = $20
ROI = (20 / 100) × 100 = 20%
In short
ROI tells you how much return you get on your money — higher ROI = better investment.
