Return on Investment – ROI

Return on investment (ROI) with respect to a project, or Project ROI, is an indicator used to measure the financial savings/gain (or loss) of a project in relation to its cost. Typically, it is used in determining whether a project will yield positive financial benefits and in turn be given approval to proceed.

The formula for determining project ROI is: Project ROI = (Financial Gain or Loss – Project Cost / Project Cost) X 100.