
The existence of ROI can also be used as an explanation opportunity cost, for example if someone invests on the stock exchange. When calculating ROI (Return of Investment), you need to subtract total sales from investment then divide it by investment multiplied by 100 percent. The following is an explanation of how to calculate the correct return on investment:
ROI formula = (Total Sales - Investment Value)
(Investment Value x 100%)
Example: The investment value of a company is Rp. 200 million and generated sales of Rp. 280 million. This means that a profit of IDR 35 million was obtained. The ROI calculation percentage for this company is as follows.
ROI = (280,000,000 - 200,000,000) / (200,000,000 x 100%)
ROI - 0.4%
Another example, suppose you invest in a company with a value of Rp. 1 million then the profit received from the investment is Rp. 1,100,000, then the value of ROI is 1.1
In some other investment cases, the amount of funds received is usually referred to as yield. Yield is income received and realized from investment results within a certain time period. For example, you buy a house worth Rp. 500 million and you have paid an advance of 100 million per year. Then the house is rented by a company and you will automatically get income from that company worth IDR. 15 million per year. So the ROI calculation is 15% obtained from Rp. 15 million divided by Rp. 100 million as a down payment on the previous house.As a businessman, don't just focus on calculating the margin or profit on the products and services sold. Investment calculations must be able to include all the values of existing resources and not only in terms of expenses and income. With this calculation, we can see the nominal funds that must be invested to achieve sales targets, the amount of profit earned, and other profits that can be used to develop the business.
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