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What is ROI? Discover more about return on investment interpretation with real-world ROI examples, calculation walkthroughs, & simple financial tips. Return on investment (ROI) is one of the most important metrics in finance. It’s the standard measure of investment performance, whether that means determining the return on stocks, mutual funds, or an asset used in a business. Because it’s such an important metric, we are providing this Return on Investment (ROI) Calculator to make that determination easy for you to calculate.
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At the end of the year, you would earn $1,255.09 in compounded returns – or a +12.55% return on your investment (ROI) - on the initial $10,000. As you can see from the table below, your compounded returns are slightly better (13 basis points) from the monthly versus quarterly payout if you hold the stock for one year only.