Rate of Return Calculation in Excel

Rate of Return Calculator

This calculator helps you determine the rate of return on an investment. The rate of return (RoR) is a metric that quantifies the gain or loss on an investment over a specific period, expressed as a percentage of the initial investment's cost. It's a fundamental tool for evaluating the profitability of various investments.

function calculateRateOfReturn() { var initialInvestment = parseFloat(document.getElementById("initialInvestment").value); var finalValue = parseFloat(document.getElementById("finalValue").value); var timePeriod = parseFloat(document.getElementById("timePeriod").value); var resultDiv = document.getElementById("result"); resultDiv.innerHTML = ""; // Clear previous results if (isNaN(initialInvestment) || isNaN(finalValue) || 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 1) { annualizedRoR = (Math.pow((finalValue / initialInvestment), (1 / timePeriod)) – 1) * 100; } var resultHTML = "

Results:

"; resultHTML += "Gain/(Loss): " + gainOrLoss.toFixed(2) + ""; resultHTML += "Total Rate of Return: " + rateOfReturn.toFixed(2) + "%"; if (timePeriod > 1) { resultHTML += "Annualized Rate of Return: " + annualizedRoR.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; box-shadow: 0 2px 5px rgba(0,0,0,0.1); } .calculator-wrapper h2 { text-align: center; margin-bottom: 20px; color: #333; } .input-section { margin-bottom: 20px; } .input-section label { display: block; margin-bottom: 8px; font-weight: bold; color: #555; } .input-section input[type="number"] { width: calc(100% – 22px); padding: 10px; margin-bottom: 15px; border: 1px solid #ddd; border-radius: 4px; box-sizing: border-box; } .calculator-wrapper button { display: block; width: 100%; padding: 12px 20px; background-color: #007bff; color: white; border: none; border-radius: 4px; font-size: 16px; cursor: pointer; transition: background-color 0.3s ease; } .calculator-wrapper button:hover { background-color: #0056b3; } #result { margin-top: 25px; padding-top: 15px; border-top: 1px solid #eee; } #result h3 { margin-bottom: 15px; color: #333; } #result p { margin-bottom: 10px; color: #555; } .error { color: red; font-weight: bold; }

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