Phase 10 · Monetization & Business Metrics

Topics

ROI Calculation

Part of the Product Management Roadmap.

Summary

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

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