roi
roi questions and answers
Learn about roi at the number one young investor website Teen Analyst.
Q: Please explain (In layman's terms) the difference between ROI and IRR?
Can someone explain to me in layman's terms the difference between ROI (Return on Investment) and IRR (Internal Rate of Return?
And as a bonus how to calculate each?
Thanks!
A: You are basically looking at two different timeframes.
IRR is a projected (future) return that you project to make on any given venture.
ROI is what you actually made on the venture.
Q: implement google analytics to track ROI on my Press Release articles?
I would like to know how to use google analytics or insert code to track my ROI on my press release articles to better measure my sales conversion.
Can I use google tags for this?
A: Most sites won't allow you to use your own HTML or javascript code on their sites (i.e. press release sites). What you'll have to do is set up analytics on your site and create a goal within your analytics settings based on the referring or landing page.
Q: How do I correctly calculate ROI when i've added money to my porfotlio slowly over the last two years?
I wish it was as easy as dividing the profit by the total investment but in this case i've been adding money slowly...is there an Excel template I can download or a formula?
Thanks!
A: You can use Holding Period Return.
Calculate periodic return on investment. In your case, you should be able to figure out growth rates on an annual (or any period that suits you) basis. Then when you have annual returns figured out, you can easily calculate the mean (geometric or arithmetic) return of your investment.
Q: How expensive is it to install solar panels on a home and what is the ROI timeline?
Average cost for 3 or 4 panels including installation? Amount of electricity in $$$'s it would save? Is it really worth it?
A: My system produces 5Kw whenever the Sun shines. It is built on towers and tracks the Sun through the day. This is the most efficient system. Roof mount are fixed and produce only a fraction of the energy I get.
ROI for me will be 10 years unless electric rates go up.
My electric bill has gone from $450.00 per month to $10.00 per month.
Cost of system? $70,000.00.
Bottom line? Green is keen but it ain't cheap!
Q: How do I keep track of my stock portfolio ROI?
Can anyone recommend a platform that will graphically/statistically tell me how I am doing YTD. I use MS Money Premium, but as soon as I sell a stock, the program is very quirky and forgets about it. I want something, software or web-based that will give me a running calculation. Thanks in advance!
A: Yahoo! Finance allows you to enter your portfolio. You can enter number of shares, price paid, trade date, etc, and it will automatically update the stock prices throughout the day and show your gain both in $$ and percentage. It will update for stock splits and correct your number of shares. If you update it at the beginning of each year, it will give you a YTD gain/loss figure.
I've tried Quicken and find it impossibly complicated, as well as expensive. It won't connect to many of my accounts and without hours of work is never correct. It depends on how many transactions you make I think, but my biggest problem with Quicken was that it did not connect to my broker.
Q: What is the difference between ROI and return on equity, or capital?
Is there a correlation between Return on Investment and Return on equity, or capital? Is the term Return on Equity the same as return on Investment?
A: Equity is the sum of contributed capital by shareholders, plus retained earnings. And retained earnings is a running net total of profits and losses. Return on investment is just the gain or loss from an amount invested. Earnings are not retained.
Q: What is the formula in finding the ROI-Return Of Investment?How to know if the business is earning not losing?
How to know if the business is earning not losing? How to compute to know if the business is not losing in its operation and how to remedy if its losing?
A: ROI is the ratio of money gained or lost (realized or unrealized) on an investment relative to the amount of money invested. ROI does not indicate how long an investment is held. However, ROI is most often stated as an annual or annualized rate of return, and it is most often stated for a calendar or fiscal year. ROI is usually expressed as a percentage rather than decimal value.
The formulas are listed here: http://en.wikipedia.org/wiki/Return_on_Investment
Q: What is an average ROI on real estate investment in these day?
I am trying to buy a building that gives me 8% ROI on investment?
A: Since most real estate investments tend to be heavily leveraged, i.e. mortgaged, the ROI is very high.
For example, I recently sold a property that I had put down $2,000.00 on and mortgaged the rest. Rents covered the mortgage payments and made for a small positive cash flow and a nice tax writeoff each year.
I held it for 10 years, thorugh a major bubble burst, and sold at a $50,000.00 profit. My investment was $2,000.00 and my profit was $50,000.00 in 10 years. Do the math!
Q: What kind of ROI do you expect from your small business?
Anyone who has a small business, what do you consider an adequate Return on Investment?
A: 15% is my minimum. I usually aim for 20% though. Anything less is just not worth the risk.
Q: Independent Congregational church and the Catholic church in the UK and ROI?
Could someone explain the differences to me please?
And what to does the Catholic church think about the Independent Congregational church.
I want to know about the differences between the two, in the UK and the Republic of Ireland, please.
A: "What separates us as believers in Christ is much less than what unites us." (Pope John XXIII)
Almost all important doctrine is completely agreed upon between Catholic Christians and other Christians.
Here is the joint declaration of justification by Catholics (1999), Lutherans (1999), and Methodists (2006):
By grace alone, in faith in Christ's saving work and not because of any merit on our part, we are accepted by God and receive the Holy Spirit, who renews our hearts while equipping us and calling us to good works.
http://www.vatican.va/roman_curia/pontifical_councils/chrstuni/documents/rc_pc_chrstuni_doc_31101999_cath-luth-joint-declaration_en.html
There are many minor doctrine issues and some major cultural traditional differences which, I believe, do not matter that much.
A Catholic worships and follows Christ in the tradition of Catholicism which, among other things, recognizes that Christ made Peter the leader of His new Church and Pope Benedict XVI is Peter's direct successor.
For more information, see the Catechism of the Catholic Church: http://www.usccb.org/catechism/text/index.shtml
With love in Christ.
Q: If my investments Roi is around 9 percent, should I do mutual fund instead?
There is this site called prosper.com and I've done quite a researched in it. The top lenders make an ROI (after all the late payments and defaults in calculations) of around 9 percent. Is my money better off to mutual funds?
A: Lending out personal loans in this enviroment of housing foreclosures might not be the best thing ...
Sure people can make 9% when the economy is good but if the economy really sours then you'll learn how difficult the loan business can be ...
I'm often short GM and my thesis is very simple:
If GM can't make money over a 20 year period when the economy is very good then what going to happen if we have any kind of real recession ?
My answer is stick to the tried and true methods and owning the stock market over time is the best way to be invested.
Q: what is a common monthly ROI on common investments?
i want to start an investment company and i think people are afraid of high return investments by thinking it is a scam. i trade on the forex market.
so for the company i want to lower the monthly ROI so it will be more realistic for people.
A: This is irrational. If you are able to generate higher returns for people, you should. The ones who are skeptical won't invest, the ones that want to, will invest. What other people think about you is none of your business. If someone is skeptical, they can do research to learn otherwise. A smart investor will be looking for higher returns. And you would want smart investors I believe.
Q: How do I figure out my ROI (Return On Investment) on a property listed in MLS, or similar?
Does anyone have a calculator that could assist, or know of a method to quickly figure this out as soon as I view a listing? Thanks!
A: Try this address :
http://www.280group.com/shareware/freeadwordstipsandROIcalculator.html
It is a free download
Q: How to MAX ROI of equity?? In a franchise?
We are 40 year olds, with 20 years of retail management experiences; with over one million in equity. Now we are trying to find, learn and invest in owning our own business or franchise. Or at least.... find the BEST ROI for our equity, time, and energy over the next 10 years..... of what is left or our work life.
Moreover our present "job and income future" is coming to a end of profitability for at least us.
What is the BEST ROI?
A: This is such a subjective question that it is impossible to give an accurate answer.
Q: What kind of annual ROI can be expected when buying a business in the $50,000-100,000 price range?
In general, if you picked some random business for $100K what ROI would you expect?
Example of what I'd like to do: Buy a small pizza place for $95K that runs itself, requires maybe 5 hours a week worth of paperwork/other and produces at least 10%/15%/20%+ annual return. Possible at all?
A: Given that it's "some random business," we have nothing to go on but statistics. The vast majority of pizza places lose money and close. So, your EV is actually negative.
There's no reason to believe that it "runs itself" or that it requires "5 hours a week."
Even if this were so, and you were in the minority that was successful, a 20% return would be VERY unlikely. 5%, at best.