Essentially, return on investment can be used as a rudimentary gauge of an Keep in mind that the means of calculating a return on investment and, therefore, Capitalization Of Earnings · FYI On ROI: A Guide To · (SROI)?. Return on Investment (ROI) is the benefit to an investor resulting from an investment of some resource. A high ROI means the investment's gains compare favorably to its cost. Complications in calculating ROI can arise when real property is refinanced, or a second mortgage is taken out. Interest on a second, or refinanced, Purpose · Risk with ROI usage · Calculation · Property. The ROI in the example above would be 20%. The calculation can be altered by deducting taxes and fees to get a more accurate picture of the total ROI.