Return On Investment Calculation Example. An organisation can use return on investment formula to evaluate the potential profits gained from an investment, while an investor can apply this formula to calculate return on stock. It is most commonly measured as net income divided by the original capital cost of the investment.

Usually, you do investments with the motto of earning a profit on it. The return on investment formula is a simple mathematical expression to calculate the roi of an investment. Example of the roi formula calculation.

### Usually, We Perform The Calculation Roi With Figures For A Full Year.

Roi = net return on investment / cost of investment x 100%. Since most methods use real estate as a passive income vehicle, we will look at an example around investing in real estate. Now, after a particular time period, one side gives $1200 in return whereas, the other one gives the output of$1400.

### But What If These Scenario Forecasts Didn’t Materialize?

Return on investment example #1. Abc company is considering investing in the new project in which the expected net profit of investment will be \$200,000 per annual for five years. Identify the net return on investment