How Do You Calculate ROI Of A Company?
If you run or own a business, you can measure the profitability of your company by the return on your investment, also called ROI. This measurement calculates the return based on how much money you put into the company, which allows you to use the same measurement no matter how large or small your investment. You can also specify the time period, such as just one year or over the lifetime of your investment. Subtract the value of your investment at the end of the specified time period from the value of your investment at the beginning of the specified time period. For example, if you wanted to find the ROI on your investment for 2010 and it was worth $80,000 at the beginning of the year and $85,000 at the end of the year, you would subtract $80,000 from $85,000 to get $5,000. Divide the change in investment value by the starting investment value. In this example, you would divide $5,000 by $80,000 to get 0.0625. Multiply the result from step 2 by 100 to convert the number from a decima
