ROI
Noun
US
/ɑːr oʊ aɪ/
UK
/ɒːr oʊ aɪ/
Key difference: US /ɑ/ "ah" as in father · UK /ɒ/ "o" as in hot
US
/ɑːr oʊ aɪ/
UK
/ɒːr oʊ aɪ/
Return on Investment — a performance measure used to evaluate the efficiency or profitability of an investment relative to its cost
If you invest $10,000 in marketing and generate $30,000 in new revenue, your ROI is (30,000 - 10,000) / 10,000 × 100 = 200%.
A company evaluating IT infrastructure upgrades calculates ROI by comparing the cost of new servers against savings from reduced downtime and improved productivity.
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Amazon reported negative ROI for its first 7 years, reinvesting all profits into growth. Investors who bought at IPO ($18/share in 1997) saw returns exceeding 100,000% by 2024, demonstrating that long-term ROI can differ dramatically from short-term metrics.
Used across various IT applications and business environments.
Practical application in IT systems and business operations.