Annual Rate of Return Calculator
The Annual Rate of Return (ARR) is a profitability ratio that estimates the return on an investment over a specified period. It's a straightforward way to gauge the efficiency of an investment by comparing the profit generated to the initial investment. While simple, it doesn't account for the time value of money, which is where other metrics like Internal Rate of Return (IRR) or Net Present Value (NPV) come into play. However, for a quick and easy assessment of an investment's profitability, ARR is a valuable tool.
function calculateARR() {
var initialInvestment = parseFloat(document.getElementById("initialInvestment").value);
var finalValue = parseFloat(document.getElementById("finalValue").value);
var timePeriodYears = parseFloat(document.getElementById("timePeriodYears").value);
var resultDiv = document.getElementById("result");
if (isNaN(initialInvestment) || isNaN(finalValue) || isNaN(timePeriodYears) || initialInvestment <= 0 || timePeriodYears <= 0) {
resultDiv.innerHTML = "Please enter valid positive numbers for all fields.";
return;
}
var totalProfit = finalValue – initialInvestment;
var averageAnnualProfit = totalProfit / timePeriodYears;
var annualRateOfReturn = (averageAnnualProfit / initialInvestment) * 100;
resultDiv.innerHTML = annualRateOfReturn.toFixed(2) + "%";
}
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font-family: sans-serif;
max-width: 600px;
margin: 20px auto;
padding: 20px;
border: 1px solid #ccc;
border-radius: 8px;
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.calculator-container h1 {
text-align: center;
color: #333;
margin-bottom: 20px;
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.calculator-container p {
color: #555;
line-height: 1.6;
margin-bottom: 30px;
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.calculator-form .form-group {
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.calculator-form label {
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margin-bottom: 5px;
font-weight: bold;
color: #444;
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.calculator-form input[type="number"] {
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border-radius: 4px;
cursor: pointer;
font-size: 16px;
transition: background-color 0.3s ease;
}
.calculator-form button:hover {
background-color: #0056b3;
}
.calculator-result {
margin-top: 30px;
text-align: center;
padding: 15px;
background-color: #e9ecef;
border: 1px solid #dee2e6;
border-radius: 4px;
}
.calculator-result h2 {
margin-top: 0;
color: #333;
}
#result {
font-size: 24px;
font-weight: bold;
color: #28a745;
}