.mrr-calc-container {
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
max-width: 800px;
margin: 0 auto;
background: #ffffff;
border: 1px solid #e0e0e0;
border-radius: 8px;
padding: 20px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
}
.mrr-calc-header {
text-align: center;
margin-bottom: 25px;
border-bottom: 2px solid #217346; /* Excel Green */
padding-bottom: 10px;
}
.mrr-calc-header h2 {
color: #217346;
margin: 0;
font-size: 24px;
}
.mrr-input-group {
margin-bottom: 15px;
display: flex;
flex-direction: column;
}
.mrr-input-group label {
font-weight: 600;
margin-bottom: 5px;
color: #333;
}
.mrr-input-group input {
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
}
.mrr-input-group input:focus {
border-color: #217346;
outline: none;
box-shadow: 0 0 0 2px rgba(33, 115, 70, 0.2);
}
.mrr-row {
display: flex;
gap: 20px;
flex-wrap: wrap;
}
.mrr-col {
flex: 1;
min-width: 200px;
}
.mrr-btn {
background-color: #217346;
color: white;
border: none;
padding: 12px 20px;
font-size: 16px;
font-weight: bold;
border-radius: 4px;
cursor: pointer;
width: 100%;
transition: background-color 0.3s;
margin-top: 10px;
}
.mrr-btn:hover {
background-color: #1a5c38;
}
.mrr-results {
margin-top: 25px;
background-color: #f9f9f9;
padding: 20px;
border-radius: 4px;
border-left: 5px solid #217346;
display: none;
}
.mrr-result-row {
display: flex;
justify-content: space-between;
margin-bottom: 10px;
padding-bottom: 10px;
border-bottom: 1px solid #eee;
}
.mrr-result-row:last-child {
border-bottom: none;
margin-bottom: 0;
padding-bottom: 0;
}
.mrr-label {
color: #555;
}
.mrr-value {
font-weight: bold;
color: #333;
font-size: 18px;
}
.mrr-error {
color: #d9534f;
text-align: center;
margin-top: 10px;
display: none;
}
/* Article Styles */
.mrr-article {
margin-top: 40px;
font-family: inherit;
line-height: 1.6;
color: #333;
}
.mrr-article h2 {
color: #217346;
border-bottom: 1px solid #eee;
padding-bottom: 10px;
margin-top: 30px;
}
.mrr-article h3 {
color: #444;
margin-top: 20px;
}
.mrr-article code {
background-color: #f4f4f4;
padding: 2px 6px;
border-radius: 4px;
font-family: monospace;
color: #c7254e;
}
.mrr-article .excel-table {
width: 100%;
border-collapse: collapse;
margin: 20px 0;
font-size: 14px;
}
.mrr-article .excel-table th, .mrr-article .excel-table td {
border: 1px solid #ccc;
padding: 8px;
text-align: center;
}
.mrr-article .excel-table th {
background-color: #f0f0f0;
font-weight: bold;
}
How to Calculate Market Rate of Return in Excel
The Market Rate of Return is a critical metric for investors, representing the percentage increase or decrease of a market index or portfolio over a specific period. While our calculator above provides instant results, finance professionals often rely on Microsoft Excel for these computations.
1. Simple Market Return Formula
To calculate the simple return of the market (or an asset) over a single period, you use the following logic:
Formula: (Ending Value - Beginning Value + Dividends) / Beginning Value
Excel Syntax Example:
Assuming your Beginning Value is in cell A2, Ending Value in B2, and Dividends in C2, enter this formula in cell D2:
=(B2 - A2 + C2) / A2
Format the result cell as a Percentage (%) to see the rate.
2. Annualized Market Return (CAGR) in Excel
If you are calculating the market rate of return over multiple years, the simple return is misleading. You need the Compound Annual Growth Rate (CAGR). There are two primary ways to do this in Excel:
Method A: The RRI Function
Excel has a built-in function specifically for this.
Syntax: =RRI(nper, pv, fv)
- nper: Number of periods (Years).
- pv: Present Value (Beginning Market Value).
- fv: Future Value (Ending Market Value + Reinvested Dividends).
Method B: The Power Formula
If you prefer manual mathematics or have an older version of Excel:
=((Ending Value / Beginning Value)^(1 / Years)) - 1
In Excel syntax assuming Beginning Value in A2, Ending in B2, and Years in C2:
=((B2/A2)^(1/C2))-1
Example Excel Table
| Row |
A (Start Value) |
B (End Value) |
C (Years) |
D (Formula Result) |
| 1 |
10,000 |
14,641 |
4 |
10.00% |
Formula used in D1: =RRI(C1, A1, B1)
What is a "Good" Market Rate of Return?
Historically, the S&P 500 has returned approximately 10% annually before inflation. When calculating your own market rate of return in Excel, comparing your result against this benchmark (or the risk-free rate plus a risk premium) helps determine if the investment performance is satisfactory.
function calculateMarketRate() {
// 1. Get Input Elements
var startInput = document.getElementById('mrr_start_val');
var endInput = document.getElementById('mrr_end_val');
var divInput = document.getElementById('mrr_dividends');
var yearsInput = document.getElementById('mrr_years');
var errorMsg = document.getElementById('mrr_error_msg');
var resultsArea = document.getElementById('mrr_results_area');
// 2. Parse Values
var startVal = parseFloat(startInput.value);
var endVal = parseFloat(endInput.value);
var dividends = parseFloat(divInput.value);
var years = parseFloat(yearsInput.value);
// 3. Handle Dividends default
if (isNaN(dividends)) {
dividends = 0;
}
// 4. Validation
if (isNaN(startVal) || isNaN(endVal) || isNaN(years) || startVal <= 0 || years <= 0) {
errorMsg.style.display = 'block';
resultsArea.style.display = 'none';
return;
}
// Hide error if previously shown
errorMsg.style.display = 'none';
// 5. Calculation Logic
// Total Adjusted Ending Value (Price appreciation + Dividends)
var adjustedEndVal = endVal + dividends;
// Absolute Gain
var gain = adjustedEndVal – startVal;
// Simple Total Return (%)
var totalReturnPct = (gain / startVal) * 100;
// CAGR (Annualized Return) Formula: (End/Start)^(1/n) – 1
// We use adjustedEndVal to account for total return
var cagrRaw = Math.pow((adjustedEndVal / startVal), (1 / years)) – 1;
var cagrPct = cagrRaw * 100;
// 6. Display Results
document.getElementById('mrr_res_gain').innerHTML = gain.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('mrr_res_total_pct').innerHTML = totalReturnPct.toFixed(2) + '%';
document.getElementById('mrr_res_cagr').innerHTML = cagrPct.toFixed(2) + '%';
// Show results container
resultsArea.style.display = 'block';
}