Downloaded 633 times
Uploaded bymiketurco
How to Calculate ROI
This document explains how to calculate Return on Investment (ROI) using a simple formula: ROI = (Net Profit / Investment) x 100. It provides examples of buying and selling a car and stocks, demonstrating how to determine ROI, including cases of both positive and negative returns. A break-even point is defined at 0%, while 100% ROI indicates that an investment has doubled.
More Related Content
Similar to How to Calculate ROI
How to Calculate ROI
- 1. HOW TO CALCULATEROI miketurco.com
- 2. This presentation issimple
- 3. But it movesfast!
- 4. So go grabthe ROI workbook at miketurco.com/roi
- 5. ROI tells youHow Much Money Your Money Earned
- 6. Here is theROI formula ROI= 100
- 7. Here is theROI formula Net Profit ROI= 100
- 8. Here is theROI formula Net Profit ROI= Investment 100
- 9. Here is theROI formula Net Profit ROI= Investment 100 Expressed as a Percentage
- 10. Zero Percent isthe Break Even Point If you buy something for a dollar and sell it for a dollar your ROI is 0%
- 11. 100% means youDoubled your Money If you buy something for a dollar and sell it for two your ROI is 100%
- 12. Example: Buy/Sell acar • You bought a used car for $1200 • You sold the car for $1800 • So your Net Profit was $600 What was the Return on your Investment?
- 13. Example: Buy/Sell acar • Your Investment was $1200 • Your net profit was $600 Your Return on Investment was 50% ROI = 600 x 100 = 50% 1200
- 14. Example: Buy/Sell Stock •You Invested $2000 in stock • One year later, You sold the stock for $1200 • So your net profit was -$600 So, what was the Return on your Investment? ROI = Net Profit x 100 Investment
- 15. Example: Buy/Sell Stock •You Invested $2000 in stocks • One year later, You sold the stock for 1200 • So your net profit was -600 When you plug your numbers into the formula, you see that your Return on Investment was a Negative Thirty Percent ROI = -600 x 100 = -30% 2000
- 16. MIKETURCO.COM Email: mike@miketurco.com Phone: (310) 714-9669
Editor's Notes
- #2 This workbook goes along with the How to Calculate ROI Video at http://miketurco.com/roi .
- #3 I am adding text here….
- #11 This is another option for an Overview slide.
- #12 This is another option for an Overview slide.
- #13 This is another option for an Overview slide.
- #14 This is another option for an Overview slide.
- #17 This template can be used as a starter file for presenting training materials in a group setting.SectionsRight-click on a slide to add sections. Sections can help to organize your slides or facilitate collaboration between multiple authors.NotesUse the Notes section for delivery notes or to provide additional details for the audience. View these notes in Presentation View during your presentation. Keep in mind the font size (important for accessibility, visibility, videotaping, and online production)Coordinated colors Pay particular attention to the graphs, charts, and text boxes.Consider that attendees will print in black and white or grayscale. Run a test print to make sure your colors work when printed in pure black and white and grayscale.Graphics, tables, and graphsKeep it simple: If possible, use consistent, non-distracting styles and colors.Label all graphs and tables.