Return on Investment (ROI)

Return on Investment (ROI) is a ratio of the gains from an investment over the investment.

ROI = Gains / Investment

For Example: Implementing a set of features required an investment of $100K, and after implementing those features, the product generated additional $300K in profitability.

In this case the ROI = ($3,00,000 / $1,00,000) = 3.