Total return on investment = $5,600 - $4,500 = $1,100

Sat, 18 Apr 2026 04:09:50 +0000

Total Return on Investment: Understanding How $5,600 – $4,500 Delivers $1,100 in Profit When evaluating investments, understanding total return on investment (ROI) is essential to measuring financial success beyond simple dollar gains. In many real-life scenarios, total ROI reflects the difference between returns generated and initial costs — and sometimes, this difference is precisely $1,100, derived from a range of $5,600 to $4,500 in investments. Here’s what this figure really means and how investors can maximize returns using such calculations. ### What Is Total Return on Investment? The total return on investment measure captures net profit from an investment less the original capital invested. While simple ROI might focus on a single-period gain, total ROI accounts for timing, compounding, and cost variances — making it a more comprehensive metric.