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Stop 10 · Monetization & Business MetricsTopics · 6/8

ROI Calculation

Part of the Product Management Roadmap

In short

Return on Investment — (gain minus cost) divided by cost — a simple ratio used to compare very different initiatives on a common scale, even when it requires rough estimation.

How to learn this

  1. 1Calculate a rough ROI estimate for a feature idea using conservative assumptions.
  2. 2Learn why ROI estimates for product work are usually ranges, not precise numbers.
  3. 3Practice presenting an ROI estimate alongside its key assumptions, not as a bare number.

More topics at this stop

Pricing StrategyRevenue Models (Subscription, Freemium, Transactional)Unit Economics: CAC, LTV & Payback PeriodP&L Basics for PMsBusiness Case WritingCompetitive Pricing AnalysisPackaging & Tiering

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