What is return on investment (ROI)?
Return on investment compares the profit from an effort with what it cost, to show whether it paid off.
ROI stands for return on investment. A common formula is (gain minus cost) divided by cost. If you spend 2,000 dollars on a website project and it brings 6,000 dollars in profit, the ROI is 200 percent. Unlike ROAS, ROI can include all costs, such as labor, software and the work itself, not only ad spend.
Why it matters for your business: ROI gives you one way to compare very different investments, like ads, a new website or a trade show, on the same scale.
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