Seo Company India

Seo Company India
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Monday, March 23, 2009

How to Calculate ROI (Return on Investment)

THE BASIC ROI PERCENTAGE CALCULATION

I do not intend to give you a thorough analysis of the ROI calculation process. Calculating an accurate ROI is hard to do, but explaining the full scope of ROI calculations in less than 1000 words is far more difficult.

As such, this article is only intended to introduce you to the basic concepts behind ROI calculations. Here is a very basic equation for calculating the ROI:

ROI = [(Payback - Investment)/Investment)]*100

Your payback is actually the total amount of money earned from your investment in your company. Investment relates to the amount of resources put into generating the given payback.

You should run ROI calculations on both monthly and yearly timelines.

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