Calculation for Rate of Return

Rate of Return Calculator

Understanding your rate of return (RoR) is crucial for evaluating the profitability of an investment over a specific period. It's a fundamental metric that helps investors compare the performance of different assets and strategies. The rate of return expresses the gain or loss on an investment as a percentage of the initial investment.

function calculateRateOfReturn() { var initialInvestment = parseFloat(document.getElementById("initialInvestment").value); var finalValue = parseFloat(document.getElementById("finalValue").value); var investmentPeriod = parseFloat(document.getElementById("investmentPeriod").value); var resultDiv = document.getElementById("result"); resultDiv.innerHTML = ""; // Clear previous results if (isNaN(initialInvestment) || isNaN(finalValue) || isNaN(investmentPeriod) || initialInvestment <= 0 || investmentPeriod <= 0) { resultDiv.innerHTML = "Please enter valid positive numbers for all fields."; return; } var profitOrLoss = finalValue – initialInvestment; var rateOfReturn = (profitOrLoss / initialInvestment) * 100; var annualRateOfReturn = rateOfReturn / investmentPeriod; var resultHTML = "

Results:

"; resultHTML += "Total Gain/Loss: $" + profitOrLoss.toFixed(2) + ""; resultHTML += "Total Rate of Return: " + rateOfReturn.toFixed(2) + "%"; resultHTML += "Annualized Rate of Return: " + annualRateOfReturn.toFixed(2) + "%"; resultDiv.innerHTML = resultHTML; } .calculator-wrapper { font-family: sans-serif; border: 1px solid #ccc; padding: 20px; border-radius: 8px; max-width: 500px; margin: 20px auto; background-color: #f9f9f9; } .calculator-inputs { display: grid; grid-template-columns: 1fr; gap: 15px; margin-bottom: 20px; } .input-group { display: flex; flex-direction: column; } .input-group label { margin-bottom: 5px; font-weight: bold; color: #333; } .input-group input[type="number"] { padding: 10px; border: 1px solid #ccc; border-radius: 4px; font-size: 16px; } .calculator-wrapper button { background-color: #4CAF50; color: white; padding: 12px 20px; border: none; border-radius: 4px; cursor: pointer; font-size: 16px; transition: background-color 0.3s ease; } .calculator-wrapper button:hover { background-color: #45a049; } #result { margin-top: 20px; padding: 15px; border: 1px solid #eee; background-color: #fff; border-radius: 4px; } #result h3 { margin-top: 0; color: #555; } #result p { margin-bottom: 10px; line-height: 1.5; } #result strong { color: #333; }

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