An awesome (yet short) slideshow that explains, in simple terms, how to calculate and use the ROI formula. Watch the video and download the workbook at http://miketurco.com/roi .
8. Here is the ROI formula
Net Profit
ROI= Investment 100
9. Here is the ROI formula
Net Profit
ROI= Investment 100
Expressed as a Percentage
10. Zero Percent is the Break Even Point
If you buy something for a dollar
and sell it for a dollar
your ROI is 0%
11. 100% means you Doubled your Money
If you buy something for a dollar
and sell it for two
your ROI is 100%
12. Example: Buy/Sell a car
• You bought a used car for $1200
• You sold the car for $1800
• So your Net Profit was $600
What was the Return on your Investment?
13. Example: Buy/Sell a car
• Your Investment was $1200
• Your net profit was $600
Your Return on Investment was 50%
ROI = 600 x 100 = 50%
1200
14. Example: Buy/Sell Stock
• You Invested $2000 in stock
• One year later, You sold the stock for $1200
• So your net profit was -$600
So, what was the Return on your Investment?
ROI = Net Profit x 100
Investment
15. Example: Buy/Sell Stock
• You Invested $2000 in stocks
• One year later, You sold the stock for 1200
• So your net profit was -600
When you plug your numbers into the formula, you see that
your Return on Investment was a Negative Thirty Percent
ROI = -600 x 100 = -30%
2000
This workbook goes along with the How to Calculate ROI Video at http://miketurco.com/roi .
I am adding text here….
This is another option for an Overview slide.
This is another option for an Overview slide.
This is another option for an Overview slide.
This is another option for an Overview slide.
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