ROI (Return On Investment)

ROI, or Return on Investment, is a financial metric used to evaluate how much profit or value an investment generates compared to its cost. It’s expressed as a percentage and helps businesses decide whether an investment is worth pursuing.

To calculate ROI, you subtract the investment cost from the gain it generates, then divide it by the cost of the investment and multiply it by 100.

e.g. if a $1,000 investment brings a $1,200 return, the ROI is 20%.

ROI is widely used in business, marketing, and finance to assess the success of various projects or strategies. By comparing the returns to the costs, it helps businesses make informed decisions and evaluate profitability across different projects or strategies.

To measure your localization ROI, you can use this simple formula:

ROI = (Net Benefit – Localization Costs) / Localization Costs * 100

💰 ROI in a nutshell: #️⃣

• Measures the profitability of an investment.
• Helps in comparing different investments or strategies.
• Used in marketing, finance, and business planning.