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Real Estate Glossary

What is Return on Investment?

Return on Investment (ROI) is a ratio that measures the profitability of an investment. It is calculated by dividing the profit or gain from an investment by the original cost of the investment. A high ROI indicates that an investment is generating a good return, while a low ROI indicates that the investment is not performing well. It's used to evaluate the performance of an investment and to compare the performance of different investments.