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What is a Management Dashboard?
The term Management Dashboard defines a wide range of data reporting and visualization tools or dashboards that allow using various performance & efficiency measures to report on an enterprise’s ability to organize and coordinate its activities in accordance with certain policies and in achievement of pre-determined objectives. What is a Management Dashboard?
 
 
 
 
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Money Management Action Plan

In this Money Management Action Plan you can read a range of tips and suggestions that will help you manage your money in an effective manner.

Money Management Action Plan
 
 
 
Home » Glossary » What is Project Return on Investment
What is Project Return on Investment   

What is Project Return on Investment



 
 

Project Return on Investment (ROI) is a ratio which compares the net benefits (profits) earned by a project against total costs incurred by this project to an organization. It is used by organizations to evaluate the efficiency of an investment made into a project: to calculate if its worth is equal to the worth of outputs obtained. The benefit (gain or return) of an investment is divided by the cost of the investment, so the result is expressed as a percentage (or a ratio). Project ROI is considered for a period of time, so you can determine so called “payback period” – an amount of time you need to reach and surpass the money invested: the project becomes profitable starting from this point. 

Project ROI is used by project stakeholders to derive if the project is worth of investment (including money, time, efforts and other resources). ROI calculation is used, along with other approaches, to develop a business case for a specific proposal. The goal is always to maximize return on the money you invest. Basically, the formula to calculate Project ROI is the following:

ROI = [(Payback - Investment)/Investment)]*100;

Payback is the total amount of profit gained from your investment into a project.

Investment represents the costs of resources involved into producing the given payback.

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