ROI
Return on Investment
How much money came back relative to what was invested, as a percentage.
What it is
ROI measures the return of an investment compared to what was spent on it. It's the question "was it worth spending this?" turned into a number. The higher the ROI, the more efficient the investment was.
ROI = (Return − Investment) / Investment × 100
Where else it shows up
🤝 Sales
Used to justify investing in a new tool, hire, or sales campaign.
Example: A CRM cost $10,000 for the year and helped close $50,000 more in sales: 400% ROI.
🧩 Product
Used to prioritize which features are worth building first, comparing team effort against expected impact.
Example: A feature took 2 sprints of work and produced a measurable increase in retention: the team calculates the ROI of the effort.
Also known as: return on investment
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