ROI Formula
Expression: ROI = (Gain − Cost) / Cost × 100
Return on Investment measures efficiency of capital use. Positive ROI means profit; higher ROI indicates better returns relative to investment size.
Example: Invest ₹1 lakh, return ₹1.4 lakh
Cost = 100,000, Gain = 140,000
ROI = (40,000 / 100,000) × 100
Result: 40% ROI