Return on investment, or ROI, is the ratio of a profit or loss made in a fiscal year expressed in terms of investment and shown as a percentage of increase or decrease in the value of the investment during the year in question.
The basic formula for ROI is ROI = Net Profit / Total Investment * 100.
Formula:
ROI = (NP ÷ TI) ÷ 100
Where,NP is Net Profit
TI is Total Investment