Q:
# What are some examples of ROI calculation?

**The simplest ROI formula divides the gains earned on an investment by its initial cost, according to Investopedia.** Someone who invests $10,000 and earns $1,000 has a return on investment, known as ROI, of 10 percent because $1,000 is 10 percent of $10,000.

Simple ROI calculations analyze a return for an undefined period of time, says Finance Formulas, and do not factor in the time elapsed to realize a return. Business Insider advises analyzing returns to determine the rate of return for an annual period to better understand gains. For example, a $10,000 investment that earned $1,000 over the course of 10 years would earn an annualized return of $100 per year, or 1 percent, whereas a $10,000 investment that earned $1,000 over the course of six months would earn an annualized return of $2,000 per year, or 20 percent.

More complicated ROI calculations might include ongoing costs of investment, such as real estate taxes or maintenance costs paid on an investment property. Rental Property Reporter, a resource for landlords, operates a real estate ROI calculator on its website that factors in costs of ownership and provides both an annualized rate of return and a prediction for annual cash flow as part of its calculations.

Learn more about Financial Calculations-
Q:
## How do you use the cost of sales formula?

A: According to Investopedia, the cost of sales formula is used by adding the amount of purchases to an existing inventory, then subtracting the remaining amo... Full Answer >Filed Under: -
Q:
## What is the inventory turnover ratio?

A: The inventory turnover ratio is a formula that displays how many times inventory is replaced over a period of time by dividing cost of goods sold over aver... Full Answer >Filed Under: -
Q:
## What is the formula for total fixed cost?

A: The formula for total fixed cost is fixed costs plus variable costs multiplied by quantity equals total cost, or FC +VC(Q)=TC, according to Education Porta... Full Answer >Filed Under: -
Q:
## How do you calculate a capitalization rate?

A: To find the capitalization rate, or cap rate, use the formula of capitalization rate equals annual net operating income over cost or value. The capitalizat... Full Answer >Filed Under: