{"id":572,"date":"2019-08-31T08:16:53","date_gmt":"2019-08-31T02:46:53","guid":{"rendered":"http:\/\/www.webtrainingindia.com\/blog\/?p=572"},"modified":"2019-12-05T12:13:23","modified_gmt":"2019-12-05T06:43:23","slug":"what-is-roi-and-how-is-it-calculated","status":"publish","type":"post","link":"https:\/\/www.webtrainingindia.com\/blog\/what-is-roi-and-how-is-it-calculated\/","title":{"rendered":"What is ROI and how is it Calculated?"},"content":{"rendered":"

What Return on Investment (ROI) means?<\/strong><\/p>\n

RETURN ON INVESTMENT ( ROI)<\/strong><\/p>\n

Definition:<\/b> It is the ratio between the Net profit and Cost of investment resulting from an investment of some resources.<\/p>\n

If we talk about ROI in a layman language it means the total amount we receive after deducting all over expenses i.e ( net profit)  divided by the amount we invested for running the business which is also known as capital, multiply by 100.<\/p>\n

The formula for calculating ROI <\/strong><\/p>\n

ROI<\/strong> =( Net Profit \/ Cost of Investment) x 100<\/p>\n

Where,<\/p>\n

ROI <\/strong>stands for Return on Investment<\/p>\n

Net Profit the<\/strong> amount we earn after subtracting all allowances business expenses.<\/p>\n

Cost of Investment the<\/strong> amount which we invested to start the business.<\/p>\n

ROI in SEO and PPC <\/strong><\/p>\n

It is normal human behavior that everyone expects a profit on his investment whether it will be in any field, let’s suppose in our daily life if we invest Rs.10 then we expect bare minimum profit from that small piece of investment. So, in the same, every client expects from a search marketing agency.<\/p>\n

ROI may differ to figure out in SEO & PPC :<\/strong><\/p>\n

The scenario in SEO ROI :<\/strong><\/p>\n