Definition
Profit relative to the amount invested, expressed as a percentage.
Example
A $38,000 profit on $190,000 invested produced a 20% return on investment.
Related terms
Frequently asked questions
What does Return on Investment mean in real estate?
Profit relative to the amount invested, expressed as a percentage.
How is Return on Investment used in practice?
A $38,000 profit on $190,000 invested produced a 20% return on investment.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.