Average Rate of Return Calculator
The Average Rate of Return (ARR) is a profitability metric used in capital budgeting to estimate the potential return on an investment. It is calculated by taking the average annual profit generated by an investment and dividing it by the initial investment cost. This provides a simple way to compare the profitability of different investment opportunities.
function calculateARR() {
var initialInvestment = parseFloat(document.getElementById("initialInvestment").value);
var annualProfits = parseFloat(document.getElementById("annualProfits").value);
var investmentPeriod = parseFloat(document.getElementById("investmentPeriod").value);
var resultValueElement = document.getElementById("resultValue");
if (isNaN(initialInvestment) || isNaN(annualProfits) || isNaN(investmentPeriod) || initialInvestment <= 0 || investmentPeriod <= 0) {
resultValueElement.textContent = "Please enter valid positive numbers for all fields.";
return;
}
var averageAnnualProfit = annualProfits / investmentPeriod;
var arr = (averageAnnualProfit / initialInvestment) * 100;
resultValueElement.textContent = arr.toFixed(2) + "%";
}
#average-rate-of-return-calculator {
font-family: Arial, sans-serif;
max-width: 500px;
margin: 20px auto;
padding: 20px;
border: 1px solid #ccc;
border-radius: 8px;
box-shadow: 0 2px 5px rgba(0,0,0,0.1);
}
#average-rate-of-return-calculator h2 {
text-align: center;
margin-bottom: 20px;
color: #333;
}
.calculator-inputs {
margin-bottom: 20px;
}
.input-group {
margin-bottom: 15px;
display: flex;
align-items: center;
gap: 10px;
}
.input-group label {
flex: 1;
font-weight: bold;
color: #555;
}
.input-group input[type="number"] {
flex: 2;
padding: 8px;
border: 1px solid #ccc;
border-radius: 4px;
box-sizing: border-box;
}
#average-rate-of-return-calculator button {
width: 100%;
padding: 10px 15px;
background-color: #007bff;
color: white;
border: none;
border-radius: 4px;
cursor: pointer;
font-size: 16px;
transition: background-color 0.3s ease;
}
#average-rate-of-return-calculator button:hover {
background-color: #0056b3;
}
#arr-result {
text-align: center;
margin-top: 20px;
padding: 15px;
background-color: #e9ecef;
border-radius: 4px;
}
#arr-result h3 {
margin-bottom: 10px;
color: #333;
}
#resultValue {
font-size: 24px;
font-weight: bold;
color: #28a745;
}