The Rate of Return (RoR) is a key metric used to evaluate 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. Understanding and calculating the RoR helps investors compare different investment opportunities, assess performance, and make informed decisions.
The basic formula for Rate of Return is:
RoR = (Current Value of Investment – Initial Cost of Investment) / Initial Cost of Investment
This calculator will help you quickly determine the Rate of Return for your investments.
function calculateRoR() {
var initialInvestment = parseFloat(document.getElementById("initialInvestment").value);
var currentValue = parseFloat(document.getElementById("currentValue").value);
var resultDiv = document.getElementById("result");
if (isNaN(initialInvestment) || isNaN(currentValue) || initialInvestment === 0) {
resultDiv.innerHTML = "Please enter valid numbers for both initial investment and current value. Initial investment cannot be zero.";
return;
}
var ror = ((currentValue – initialInvestment) / initialInvestment) * 100;
resultDiv.innerHTML = "