How do you determine ROI on a profit on an investment deal?

4 Jan , 2016  

You simply take your profits and then divide it by your capital investment…this is your yearly ROI! To further give you a true number if you made this in less than a year, take that number multiplied by 12 months and then divide that by how long you held the investment and that’s your true ROI…

Ex: $335,000 investment with $90,000 profitĀ in 5 months. $90k/$335k=26.8% yearly ROI. Multiply this by 12 months and then divide it by 5 months and your true return on investment was 64%

Bam! This is how we do it everyday!


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