Return on investment (ROI)

🎉 THe fun definition:

ROI, or Return on Investment, is the financial world's glorified version of a report card. It’s the magical number that tells you if your money-spending escapades were an act of genius or a financial dumpster fire. In short, it lets you know if you’re making it rain or just catching the drizzle.

🤓 THe nerdy definition:

Return on Investment (ROI) is a financial metric used to evaluate the efficiency and profitability of an investment relative to its cost. It is calculated by dividing the net profit from an investment by the initial outlay or cost of the investment, usually expressed as a percentage. This performance measure helps businesses and investors compare the attractiveness of various investments or to assess the effectiveness of past expenditures. A higher ROI indicates a more favorable return relative to the cost, making it a crucial tool for decision-making in resource allocation and strategic planning.