1. What is Return on X (ROX)?

Definition: Return on X (ROX) measures the profitability of an investment as a percentage of its cost.

Purpose: It helps investors and business owners evaluate the efficiency of an investment or compare different investment opportunities.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( ROX \) — Return on investment (%)
• \( R \) — Return amount (USD)
• \( C \) — Cost of investment (USD)

Explanation: The formula calculates what percentage of the original investment was gained (or lost) as profit.

3. Importance of ROX Calculation

Details: ROX helps determine whether an investment is worthwhile, compare different investment options, and measure business performance.

4. Using the Calculator

Tips: Enter the return amount and cost in USD. Cost must be greater than 0. The result shows the percentage return on your investment.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative ROX mean?
A: A negative ROX indicates a loss on your investment - you received less money than you invested.

Q2: What's considered a good ROX?
A: This varies by industry, but generally an ROX above 10-15% is considered good, though higher-risk investments typically demand higher returns.

Q3: How is ROX different from ROI?
A: ROX is essentially the same as ROI (Return on Investment) but can be applied to any "X" (specific investment, project, or expenditure).

Q4: Can ROX be over 100%?
A: Yes, if your return is more than double your cost, ROX will exceed 100%.

Q5: Should I include all costs in C?
A: Yes, include all relevant costs associated with the investment to get an accurate ROX calculation.