Accounting Return On Investment (ROI) is a calculation that helps businesses evaluate their investment performance. It measures the profitability of investments in terms of money received versus the cost of acquiring them. It is expressed as a percentage, showing the amount of return on each dollar invested. To calculate ROI: Start by subtracting the cost of the investment from the gain it generated, then divide this number by the cost of the investment. Finally, multiply the result by 100 and you have your ROI percentage. By using the formula for calculating ROI, businesses can measure how efficiently their investments are performing and make informed decisions about future investments.