return on investment

Meaning

This term (often abbreviated as ROI) measures the efficiency or profitability of an investment relative to its cost. In broader business conversations, it can also refer to the non-financial benefits gained from spending time, effort, or resources on a project. The tone is analytical, objective, and highly common in financial and strategic planning.

Examples

• We need to calculate the expected return on investment before approving the marketing budget.

  We need to calculate the expected return on investment before approving the marketing budget.

• Upgrading our manufacturing equipment yielded an immediate return on investment by reducing energy costs.

  Upgrading our manufacturing equipment yielded an immediate return on investment by reducing energy costs.

• While the initial training program is expensive, the long-term return on investment is undeniable.

  While the initial training program is expensive, the long-term return on investment is undeniable.

• Our social media campaign generated a very high return on investment, doubling our sales in a month.

  Our social media campaign generated a very high return on investment, doubling our sales in a month.

• Investors are demanding a faster return on investment due to the volatile market conditions.

  Investors are demanding a faster return on investment due to the volatile market conditions.

Common Mistakes

• ✗ We got a high return of investment from the new ads.

  ✓ We got a high return on investment from the new ads.

  The correct preposition is 'on', not 'of'.

• ✗ The project returned on investment very quickly.

  ✓ The project delivered a return on investment very quickly.

  'Return on investment' is a noun phrase, not a verb phrase. Use it with verbs like 'deliver', 'yield', 'generate', or 'see'.

Related Expressions

Practice

• Before we buy the new software, we must evaluate its potential ___.

  💡 The profit or benefit gained compared to the cost.

  Show answer

  return on investment

• Our focus this quarter is on projects that offer a quick ___.

  💡 Often abbreviated as ROI.

  Show answer

  return on investment