FINANCIAL CALCULATORS
Rate Of Return Calculator
Calculate your investment’s rate of return over any period.
What is the Rate Of Return Calculator & How does it work?
The Rate of Return (RoR) is a performance measure used to evaluate the profitability of an investment. It indicates how much an asset has gained or lost in value over a specific time frame, expressed as a percentage.
To calculate the rate of return, you need to know the initial investment amount, the final value of the investment, and the holding period. The formula for calculating the simple rate of return is:
To calculate the rate of return, you need to know the initial investment amount, the final value of the investment, and the holding period. The formula for calculating the simple rate of return is:
RoR = frac{(Final Value – Initial Investment)}{Initial Investment} times 100
RoR = Rate of Return
Final Value = The value of the investment at the end of the period
Initial Investment = The original amount invested
Final Value = The value of the investment at the end of the period
Initial Investment = The original amount invested
Parameters
Result—
Frequently Asked Questions
How do I calculate the rate of return on my investment?
To calculate the rate of return, subtract the initial investment from the final value, divide by the initial investment, then multiply by 100 to get a percentage.
What is the formula for simple rate of return?
The formula for simple rate of return is: RoR = (Final Value - Initial Investment) / Initial Investment * 100.
Can I use this calculator for stocks as well?
Yes, you can use this calculator for stocks. Just input the purchase price as the initial investment and the current stock price as the final value.
What if my investment includes dividends?
This basic calculator does not account for dividends. For a more accurate calculation, include the total dividends received in your final value.
How do I interpret the rate of return percentage?
A positive percentage indicates a gain, while a negative percentage indicates a loss. The higher the absolute value, the greater the change in investment value.
Results are for informational purposes only and do not constitute professional advice.