Return on Investment (ROI) is a way to measure an investment’s performance. ROI measures the returns of an investment relative to the original cost. It’s also a convenient way to compare the performance of different investments.
Here’s how you calculate ROI. You take the current value of the investment and subtract the original cost of the investment. Then you divide that number by the original cost.
ROI = (Current Value – Original Cost) / Original Cost
ROI = (8000-6000)/6000
ROI = 0.33
This means that you’re 33% up from your original investment. It’s also worth taking into account the fees (or interest rate) that you have to pay to get a more accurate picture.