1. Project Management
  2. Business Value

Project Return on Investment (ROI)

Percentage

ROI measures the profitability of a project. It provides stakeholders with an understanding of the financial benefits derived from the project relative to its costs, aiding in investment decisions.

Formula

ROI = (Net Profit from the project / Total project costs) x 100

Example

If a project earns a net profit of $50,000 and costs were $200,000, the ROI is 25%.