ROI Example for Beginners
Let’s use a real example to understand return on investment clearly and simply.
Investment details
Initial investment: $5,000
Final value: $6,500
Profit
Profit = $6,500 − $5,000 = $1,500
ROI calculation
ROI = (Profit ÷ Investment) × 100
ROI = ($1,500 ÷ $5,000) × 100 = 30%
What this means
A 30% ROI means the investment returned 30% of the original amount as profit.
Related guides
Read our ROI formula explained guide and our what is a good ROI article.