English · Work & Business

return-on-investment

/rɪˈtɜːrn ɒn ɪnˈvɛst.mənt/

[/rɪˈtɜːrn ɒn ɪnˈvɛst.mənt/]

gain relative to cost

Advancednoun

Definition

The benefit gained from an investment measured against its cost.

Example

They calculated the return on investment before committing to the expensive new equipment.

They calculated the return on investment before committing to the expensive new equipment.

Etymology

The phrase behind the acronym ROI, long established in finance.

How & Where It’s Used

Used in finance, marketing, and management.

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