Investing is an effective way to put your money to work and build wealth.

Think about it this way: you could have money sitting in your bank account and have it lose its value due to inflation (due to earning low interest in a chequing account), or you could be investing in the stock market (more on this below) and be making money. When you invest properly you can exceed inflation, have a return on your investment (ROI) and make a profit.

ROI is a key metric for investors as it is used to evaluate the efficiency of an investment.

ROI = Current Value of Investment – Cost of Investment/Cost of Investment

For example, if Bob invested $1,000 into Apple and sold the shares 1 year later when they were at $2,000, the ROI would be $2,000 – $1,000/$1,000 = 100%. The ROI calculation shows how much money Bob has made and the percentage gain (or loss in some cases) that he has seen over 1 year. 

To calculate your ROI, use the formula above or click here.