ROI - Return on Investment
What is ROI?
A standard definition for ROI is pretty straight forward:
The return on investment ratio calculates the percentage return (profitability) on an investment. This is usually calculated something like this:
Return on Investment Ratio = (Earnings from Investment – Cost of Investment) / Cost of Investment
So, let's assume an investment of $25,000 returns $40,000. Here's how to calculate a simple ROI:
(40,000-25,000) / 25,000 = %60
So in this instance, the $25,000 investment returned %60 on the investment in the first year (assuming all income and cost are for the first year).
Chuck Melton's ROI calculation
Melton uses a slight variation, one I think works well when calculating the effect of improvement for a custom app instead of a financial investment such as stocks:
The basic calculation is (Reduced cost + Increased revenue) / Project cost = ROI.
Melton provides details on how to calculate each part with a detailed example that you don't want to miss. Be sure to read the whole thing.
Weight Loss, Tim Cook and the Apple Watch
OK, I'll grant you this is a bit off topic. Last year I mentioned in a post that Tim Cook lost 30 pounds with the help of his Apple Watch. I referenced a post from Mens Health magazine. As a result, Jen Miller from jensreviews.com noticed that link and contacted me about linking to her comprehensive weight loss article if I liked it.
Well, I read her post and I liked it. There is plenty of practical advice and some great looking recipes that I haven't had time to try (although they are bookmarked!). Here's a teaser:
You have probably come across many weight loss fads and trends that come and go, that might work for your co-worker’s neighbor’s daughter. But the most reliable ways to lose weight have to be backed by science.
And that's what this article is about - here are the 11 best ways to lose weight, according to science.
Here's hoping you like it, too!