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Profit uses user-supplied values for startup cost, incemental revenue, incremental cost, budget, and population to maximize the profit.
Oracle Data Miner calculates profit as follows:
Profit = -1 * Startup Cost + (Incremental Revenue * Targets Cumulative - Incremental Cost * (Targets Cumulative + Non Targets Cumulative)) * Population / Total Targets
Profit can be positive or negative, that is, it can be a loss.
To view the profit predicted by this model, select the Target Value that you are interested in. You can change the Selected Population%; the default is 1%. To specify settings for the profit calculation, see Profit Setting Dialog.
Return on Investment (ROI) is the ratio of money gained or lost (whether realized or unrealized) on an investment relative to the amount of money invested. Oracle Data Mining uses this formula:
ROI = ((profit - cost) / cost) * 100 where profit = Incremental Revenue * Targets Cumulative, cost = Incremental Cost * (Targets Cumulative + Non Targets Cumulative)
See Profit and ROI Example for an example of these calculations, and Profit and ROI Use Case to see what these values could mean in a specific case.