ROI (Return on Investment) is a measure of how profitable an investment is. Calculating ROI manually can be a bit tricky, but with the right information and tools, it can be done.
First, determine the total amount of the initial investment. This could include the purchase price, any associated fees, and any taxes paid.
Next, calculate the total revenue that has been earned from the investment. This includes any gains or losses on the sale of the investment, any interest earned, any dividends received, and any other income generated.
Finally, subtract the total amount of the initial investment from the total revenue earned. This will give you the net profit or loss from the investment. Divide this number by the total amount of the initial investment to get the ROI.
For example, if you invested $10,000 in a cryptocurrency and made a profit of $8,000, you would have a net profit of $8,000. Divide this number by the initial investment of $10,000 to get an ROI of 80% on your investment.
Calculating ROI manually can be an involved process, but it can be a useful tool when evaluating the performance of your investments.
First, determine the total amount of the initial investment. This could include the purchase price, any associated fees, and any taxes paid.
Next, calculate the total revenue that has been earned from the investment. This includes any gains or losses on the sale of the investment, any interest earned, any dividends received, and any other income generated.
Finally, subtract the total amount of the initial investment from the total revenue earned. This will give you the net profit or loss from the investment. Divide this number by the total amount of the initial investment to get the ROI.
For example, if you invested $10,000 in a cryptocurrency and made a profit of $8,000, you would have a net profit of $8,000. Divide this number by the initial investment of $10,000 to get an ROI of 80% on your investment.
Calculating ROI manually can be an involved process, but it can be a useful tool when evaluating the performance of your investments.