Phew, you made it this far. At this stage, 99% of the work is complete. By far the most difficult challenge is collecting the data you need to make the calculations. Once you have the data, the calculations are really simple.
The return on investment is the profit (return-investment) divided by the investment. This is a profitability ratio expressed as a percentage, not a dollar value figure.
Return on investment is profit divided by investment: a profitability ratio expressed as a %, not a $ value figure
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One important lesson is that it is important to break the community down by year and not just the overall amount since the community was created. This highlights whether the community going forward is likely to continue to generate a positive return on investment.
Community ROI Template
You can follow this in this spreadsheet (first page) or simply follow the process below.
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