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Return on Investment (ROI) measures
how effectively a business uses its capital to generate profit; the higher the ROI, the better. ROI
is arguably the most popular metric to use when comparing the attractiveness of one IT investment
to another.
 See our complete definition for
ROI
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How do you
calculate ROI? |
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| ROI is
usually stated as a percentage over a specific amount of time; in IT purchasing, three years is the
most common time span since technology is often effectively obsolete after three years. Calculating
ROI involves two parts: knowing what to measure and understanding how to quantify the value of
those measurements into actual dollars.
How do I calculate ROI?
Metrics for calculating
ROI
"ROI
Insider" tips and newsletters
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Is ROI having
an identity crisis? |
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This was first published in March 2004
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