How to Calculate a Rate of Return on an Investment

Investment Rate of Return Calculator
Understanding the rate of return (RoR) is crucial for evaluating the profitability of an investment. It measures the gain or loss on an investment over a specific period, expressed as a percentage of the initial investment cost. A positive rate of return indicates profit, while a negative rate signifies a loss. This calculator helps you quickly determine the RoR for your investments.
function calculateRateOfReturn() { var initialInvestment = parseFloat(document.getElementById("initialInvestment").value); var finalValue = parseFloat(document.getElementById("finalValue").value); var investmentPeriod = parseFloat(document.getElementById("investmentPeriod").value); var resultElement = document.getElementById("result"); if (isNaN(initialInvestment) || isNaN(finalValue) || isNaN(investmentPeriod) || initialInvestment <= 0 || investmentPeriod <= 0) { resultElement.innerHTML = "Please enter valid positive numbers for all fields."; return; } var totalGain = finalValue – initialInvestment; var rateOfReturn = (totalGain / initialInvestment) * 100; var annualRateOfReturn = rateOfReturn / investmentPeriod; resultElement.innerHTML = "

Results:

" + "Total Gain/Loss: " + totalGain.toFixed(2) + "" + "Total Rate of Return: " + rateOfReturn.toFixed(2) + "%" + "Average Annual Rate of Return: " + annualRateOfReturn.toFixed(2) + "%"; } .calculator-container { font-family: sans-serif; border: 1px solid #ccc; padding: 20px; border-radius: 8px; max-width: 500px; margin: 20px auto; background-color: #f9f9f9; } .calculator-title { font-size: 24px; font-weight: bold; margin-bottom: 15px; text-align: center; color: #333; } .calculator-description { font-size: 14px; line-height: 1.6; color: #555; margin-bottom: 20px; text-align: justify; } .calculator-inputs .input-group { margin-bottom: 15px; } .calculator-inputs label { display: block; margin-bottom: 5px; font-weight: bold; color: #444; } .calculator-inputs input[type="number"] { width: calc(100% – 22px); padding: 10px; border: 1px solid #ddd; border-radius: 4px; font-size: 16px; } .calculator-inputs button { width: 100%; padding: 12px 15px; background-color: #4CAF50; color: white; border: none; border-radius: 4px; font-size: 16px; cursor: pointer; transition: background-color 0.3s ease; } .calculator-inputs button:hover { background-color: #45a049; } .calculator-result { margin-top: 25px; padding: 15px; border: 1px solid #eee; border-radius: 4px; background-color: #fff; } .calculator-result h3 { margin-top: 0; color: #333; } .calculator-result p { margin-bottom: 8px; color: #666; font-size: 15px; }

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