Calculating Simple ROI

[spikedo]

Okay, so I'm math-challenged! I wanted to figure out a simple ROI for some deals. Let's say I sold abcdomain.com for $195.00 when it cost me only $59.00 to buy. Not figuring any other costs, is my ROI 5463%? The formula I'm using is (net profit - domain cost) / domain cost x 100.

 

[werty]

No. It would be 230.51%

(Gain From Investment-Cost of Investment)/Cost of Investment x100


In other Words: Net Profit/Domain Cost x 100

Hope this helps

 

[spikedo]

How do you figure that? Please show you calculation.

okay. thx!

 

[werty]

I edited the last message to make it simpler

 

[garptrader]

To fairly represent one's return the calculation should factor in the value of one's time researching to find domains (going through drop lists, looking for highly-searched phrases to find if any domain with those keywords is available, time spent in auctions), manage portfolios and renewals, market them and perform the transfer when a domain is sold. When one factors in the cost of one's time, selling domains for less than $100 is a losing venture.

 

[samuelhr]

If you buy a domain for $100 and sell for $100, your ROI is 0%. If you buy a domain for $100 and sell for $200, your ROI is 100%.

 

[bamaboy]

Formula shown by werty is totally correct.
For example, if you buyed a domain in 10$ and sold in 20$ Your ROI will be 100%.

 

[Jeff]

Okay, so I'm math-challenged! I wanted to figure out a simple ROI for some deals. Let's say I sold abcdomain.com for $195.00 when it cost me only $59.00 to buy. Not figuring any other costs, is my ROI 5463%? The formula I'm using is (net profit - domain cost) / domain cost x 100.

230.51% is spot on! :gl: :imho:

How long was the holding period, as often times folks then "annualize" it as well. :talk:
Congrats!
-Jeff