The Formula to Calculate Return on Investment (ROI) Return on investment is the ratio of the purchase price to the difference between the purchase price and the selling price.

Calculating return on invested capital The general formula for calculating ROIC is: So, the first step is to locate the company's net income after tax, which can be found on its income statement.

A helpful twist on the classic ROI formula, operating income return on investment requires a deeper look at a company's finances.

The article How to Calculate a Monthly Return on Investment originally appeared on Fool.com. Try any of our Foolish newsletter services free for 30 days.

The annual rate of return on the $400k turns out to be 14% and the total multiple is 1.3x. That's not a bad outcome for a personal investment in a local business you want to support.

It is essential that you calculate the potential return on investment of your higher education and college spending so that you can maintain a net positive ROI.

The Formula to Calculate Return on Investment (ROI) Return on investment is the ratio of the purchase price to the difference between the purchase price and the selling price.

Here’s how to calculate your return on investment: You take the amount you made on your investment (the gain) and from it you subtract what you paid for the investment (the cost).

Do you know how to calculate the rate of return on investment (ROI) for your portfolio and assets? Learn more today and build towards a wealthy retirement.