# What is ROI? Learn how to calculate Return on Investment

In this way, you can know which investments are worthwhile and how to optimize those that are already Mexico Phone Number List so that they have an even better return.The metric is important because it allows you to evaluate how certain initiatives contribute to the results of the company.In the same way, based on ROI, it is possible to plan goals based on tangible results and understand whether or not it is worth investing in certain channels.How to calculate ROIThere is a simple formula to calculate ROI, which consists of:ROI formulaImagine that the profit of your company was \$ 100,000 and the initial investment was \$ 10,000. Using the formula above, we have:ROI = (100,000 – 10,000) / 10,000ROI = 9In this illustrative example, the Return on Investment was 9 times the initial investment. You can also multiply the result by 100 to get it as a percentage (in this case, 900% return).Why is ROI important?ROI is an effective indicator when it comes to calculating the return on an action and can be applied to all investments, from those made in marketing campaigns and events, to improvements in the company’s infrastructure, to name a few examples.When evaluating your company, investors will also see the ROI, since it is essential to know how much you will earn to know if the investment is worth it.Being attentive to this indicator also allows the company to plan its goals based on possible results to be achieved, observing previous performances.You can also identify the time that investments take to bring a return.Also keep in mind that your company must understand what ROI means to itself and how the metric influences its objectives. Plot realistic metrics and monitor them constantly.Read more about ROI in the post: