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Return on Investment (ROI) Calculation

Did you calculate your ROI (Return On Investment) for the investment made on technology ? How far is your ROI considered in your new technology purchase?

It becomes a difficult task for many businessmen to calculate the ROI. Sometimes they skip it altogether. It should not be, because if investment on Technology is not saving your money, you are losing on it. Here you will be clarified about the ROI for your technology investment and the methodology of calculating.

Every businessmen gets returns on the investment made in business. Are they positive returns and what does it mean to have a positive returns on investment? The answer is quite simple. If a technology is benefitting more than the time and money invested is positive returns. Certainly every businessmen prefers the same. Considering to have a positive ROI should be both before and after the purchase of technology. Investment in business is valuable and we should be careful whether the technology or product is worth for the money spent. Once when your investment is done, you should follow up that you have done a correct investment and if you are benefitted from same. This assignment helps in detecting your mistakes and prevent repeating the same next time. Check your technology, currently in use. Ensure that it serves as a base foundation for your business, rather than having it for sake.

People learn from mistakes. You will now make a wiser technology purchase next time.

ROI calculating method

It is not necessary to derive perfect or exact ROI. Just apply this basic formula

ROI = net gain/cost

Example: You spend $100 and make $150. Your net gain is $50

ROI=50/100=50%