ROI | Return On Investment

ROI stands for Return On Investment, which is the ratio of profit to investment amount (return on investment), which means “”What percentage of profit was obtained for investment?”” It can be calculated by “”profit (sales – cost) ÷ investment cost × 100 (%)””. Profit is calculated as “”Operating income calculated””, “”gross margin (calculated by subtracting cost from sales)””, “”Profit after sales promotion expenses (cost from sales minus selling, general and administrative expenses) The calculation formula may change depending on the purpose. At this time, profit after deducting operating profit OR marketing expenses is preferable if cost allocation can be done precisely). For example, for Web ads that generate 10000000 IDR profit with an advertising cost of 1000000 IDR, the ROI is 10 times 1, 000%.

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