Rate of return calculator

To calculate the rate of return, you’ll need the initial investment value, the final investment value, and the time period over which the investment was held.

Ciaran Burke

Page written by AI. Reviewed by Ciaran Burke on January 4, 2024.

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This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan.

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Rate of return

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How to calculate rate of return

The formula for calculating the rate of return is as follows:

Rate of Return=(Final Value−Initial Value)/Initial Value×100

Here’s how to calculate it step-by-step:

  1. Subtract the Initial Value from the Final Value. This will give you the total change in value over the investment period.
  2. Divide the result from step 1 by the Initial Value. This will give you the relative change as a decimal.
  3. Multiply the result from step 2 by 100 to convert it into a percentage.
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