Return on Investment (ROI)
A measure of the gain or loss generated relative to the amount invested.
Also known as: ROI, Return on investment
Category: Concepts
Tags: businesses, metrics, decision-making
Explanation
Return on Investment (ROI) measures the efficiency of an investment by comparing the gain relative to its cost. Calculated as (Gain - Cost) / Cost, it helps evaluate whether investments of time, money, or effort are worthwhile. In PKM and learning, consider ROI of time spent: Does reading this book justify the hours invested? Does maintaining this system pay off in productivity? Not everything can be quantified, but ROI thinking helps prioritize high-leverage activities.
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