Real Estate Investing Glossary
Return on investment
Return on investment, or ROI, is a measure of what an investment earned compared with what was put into it.
Return on investment, or ROI, is a measure of what an investment earned compared with what was put into it. The exact formula varies, so it is important to know what a given ROI figure includes.
Why it matters to a Las Vegas investor
Different sources define ROI differently, so a quoted figure for one Las Vegas rental may not compare with another. Our article on estimating return explains the purpose and the limits of these calculations.
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Related terms
Questions about Return on investment
Does ROI predict what I will earn?
No. It estimates how a property is likely to perform based on limited information. Actual results depend on taxes, expenses and other factors.
Why do two ROI figures differ?
They may count different items, such as financing costs or appreciation.