Return on Investment (ROI) is simply a measure to help decide whether an investment is worthwhile. It considers the costs, the benefits and the time value of money.
The concept of ROI is often misunderstood. A reliable ROI analysis can be complicated and time-consuming to construct — in some instances, it may not be possible, worthwhile or cost-effective to do so. However, the discipline of conducting the analysis can give one great insight into a firm's operations.
Look at the various techniques and formulas you can use and the pros and cons of Analyzing the Return on Investment.
What costs and benefits should be considered for your project? How can you quantify those intangibles? Learn about the Costs and Benefits to Consider when conducting your analysis.
Various ROI Tools and Calculators are available to assist you — including a comprehensive spreadsheet created by the Electronic Commerce Institute and made available to you courtesy of Industry Canada.
