Return on investment (ROI) is a popular tool to measure the probability of turning a profit on an investment. It is based on a ratio turned to a percentage which compares the initial investment and related costs to the final value of the investment including related gains. It is useful when comparing past investments or playing "what if" with several investment possibilities.

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While it is true that ROI measures profitability of anything, this fact makes it difficult to use wisely. The formula is, indeed, simple but intervening factors make its application in real situations problematic. For example, in real estate, there are a multitude of costs that could come into play. Legal fees, inspection costs and taxes are a few examples. Likewise, gains such as rental income may be in play.

It is up to the user to identify these intervening factors and include them in the information used to generate the ROI. Additionally, historical performance is not always an accurate predictor of future performance. For this and many other reasons, the accuracy of the information generated by this tool is entirely up to the user and its application is totally the responsibility of the user and not Symboc Designs. By using this tool, the user accepts these terms and holds Symboc Designs harmless for any damages, real or perceived, incurred after the use of this tool.

You may have your very own ROI calculator on your WordPress website for under $60.  Just click on The Pricing Tab above and select an offer.