Rate of Return Calculator
This calculator helps you determine the rate of return on an investment, a crucial metric for understanding how well your money has performed over a specific period. The rate of return (RoR) is expressed as a percentage and indicates the profit or loss generated on an investment relative to its initial cost.
function calculateRateOfReturn() {
var initialInvestment = parseFloat(document.getElementById("initialInvestment").value);
var finalInvestment = document.getElementById("finalInvestment").value;
var timePeriod = document.getElementById("timePeriod").value;
var resultDiv = document.getElementById("result");
if (isNaN(initialInvestment) || isNaN(finalInvestment) || isNaN(timePeriod)) {
resultDiv.innerHTML = "Please enter valid numbers for all fields.";
return;
}
if (initialInvestment <= 0) {
resultDiv.innerHTML = "Initial investment must be greater than zero.";
return;
}
if (timePeriod <= 0) {
resultDiv.innerHTML = "Time period must be greater than zero.";
return;
}
// Calculate total profit/loss
var profitLoss = finalInvestment – initialInvestment;
// Calculate simple rate of return
var simpleRoR = (profitLoss / initialInvestment) * 100;
// Calculate annualized rate of return (CAGR – Compound Annual Growth Rate)
// Formula: ((Ending Value / Beginning Value)^(1 / Number of Years)) – 1
var cagr = (Math.pow((finalInvestment / initialInvestment), (1 / timePeriod)) – 1) * 100;
resultDiv.innerHTML = "
Results:
" +
"Total Profit/Loss: " + profitLoss.toFixed(2) + "" +
"Simple Rate of Return: " + simpleRoR.toFixed(2) + "%" +
"Compound Annual Growth Rate (CAGR): " + cagr.toFixed(2) + "%";
}
.calculator-container {
font-family: Arial, sans-serif;
max-width: 600px;
margin: 20px auto;
padding: 20px;
border: 1px solid #ddd;
border-radius: 8px;
background-color: #f9f9f9;
}
.calculator-container h2 {
text-align: center;
color: #333;
margin-bottom: 20px;
}
.inputs {
display: grid;
grid-template-columns: 1fr;
gap: 15px;
}
.input-group {
display: flex;
flex-direction: column;
}
.input-group label {
margin-bottom: 5px;
font-weight: bold;
color: #555;
}
.input-group input[type="number"] {
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
}
.calculator-container button {
width: 100%;
padding: 12px 20px;
background-color: #007bff;
color: white;
border: none;
border-radius: 5px;
font-size: 18px;
cursor: pointer;
transition: background-color 0.3s ease;
margin-top: 15px;
}
.calculator-container button:hover {
background-color: #0056b3;
}
.result-container {
margin-top: 25px;
padding: 15px;
border: 1px solid #e0e0e0;
border-radius: 5px;
background-color: #fff;
text-align: left;
}
.result-container h3 {
color: #007bff;
margin-top: 0;
margin-bottom: 10px;
}
.result-container p {
margin-bottom: 8px;
font-size: 16px;
color: #333;
}