How to properly calculate negative ROIs?

I am just wanting to calculate very simple ROIs, which could be very negative, but it doesn't seem to work.

Wikipedia defines ROI as this formula:

return on investment = (gain from investment – cost of investment) / cost of investment

This doesn't seem to work right for negative numbers, for exmaple:

If I spend 24.00 and make 2.00 my calculation would be:

(2-24) / 24 = -91.67%

This doesn't make sense to me, seeing as the total amount I lost was 22 which is 1000% of 2.

I hope someone can help explain what I am misunderstanding, or if there is a better way to work with negative ROI.


You made a 91.67 % loss. 91.67 percent of 24 being 22.

ROI = -91.67 %


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