ROI vs Profit: What Is the Difference?
ROI and profit are related, but they are not the same. Profit shows how much money you made, while ROI shows how efficient the investment was.
What is profit?
Profit is the amount left after subtracting cost from final value.
What is ROI?
ROI measures profit relative to the original investment and is usually shown as a percentage.
Why the difference matters
Two investments can have the same profit but different ROI, depending on how much money was invested.
Related guides
Read our ROI formula explained guide and our what is a good ROI article.