How Do I Calculate Investment Profit?

Investment profit margin refers to the ratio of the project's annual interest and tax profit to total investment. The calculated investment profit margin should be compared with the industry's standard investment profit margin or the industry's average investment profit margin. If it is greater than (or equal to) the standard investment Profit rate or average investment profit rate, the project is considered acceptable, otherwise it is not feasible.

Profitability of investment

Total investment profit margin (ROI) = EBIT /

The calculated investment profit margin should be compared with the industry's standard investment profit margin or the industry's average investment profit margin. If it is greater than (or equal to) the standard investment profit margin or the average investment profit margin, the project is considered acceptable, otherwise Not feasible.