Return on Investment (ROI)

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Return on investment, better known as ROI, is a bahrain telegram data financial indicator of your real estate business, based on the relationship between money spent and money earned.

With it, you can understand which investments are giving you the best return and where you should reallocate your resources. To calculate ROI, you should use this formula: REVENUE – COST / COST x 100.

The result of the formula will be in percentage, remembering that there is no minimum ROI or ideal ROI, but the higher the ROI, the more assertive the investment is.

Contribution Margin Index (IMC)
The contribution margin is an indicator of your real estate agency that shows what percentage of the profits of each product are used to pay the company's expenses. The contribution margin serves to have a better view of the financial viability of your real estate agency.

To find out what your Contribution Margin is, simply take your product's sales price (in this case, the average commissions) and subtract the real estate agency's costs and expenses. Therefore, MC = SALE PRICE – (COSTS + EXPENSES)

After discovering the MC, we can discover the Contribution Margin Index which is given by: CONTRIBUTION MARGIN / SALE PRICE

If the Contribution Margin is negative, your real estate agency is making a loss. If it is fair or small, your company will probably reach the break-even point but will not make a satisfactory profit. If it is larger, your real estate agency is making a good profit.