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Project Management & Agile · Foundational

Return on Investment (ROI)

Ratio of net benefit to cost: (gain - cost) / cost, expressed as a percentage.

Definition

ROI is a simple profitability measure used in business cases and project selection.

Example

$150k benefit on a $100k cost gives a 50% ROI.

Exam tip

Higher ROI is better; it ignores timing unless adjusted.

Related terms