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ROI measures the amount of return on an investment relative to the investmentâs cost. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment, and the result is expressed as a percentage or a ratio.The return on investment formula: In the above formula, Gain from Investmentâ refers to the proceeds obtained from the sale of the investment of interest.EFINITION of 'Return On Investment-ROI'. A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments.