Average Return on Investment Formula

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Average Return refers to the typical rate of return earned on an investment or portfolio over a specific period of time. Check FAQs
AR=modu̲sTVRTNR
AR - Average Return?TVR - Total Value of Return?TNR - Total Number of Returns?

Average Return on Investment Example

With values
With units
Only example

Here is how the Average Return on Investment equation looks like with Values.

Here is how the Average Return on Investment equation looks like with Units.

Here is how the Average Return on Investment equation looks like.

97.5Edit=modu̲s780Edit8Edit
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Average Return on Investment Solution

Follow our step by step solution on how to calculate Average Return on Investment?

FIRST Step Consider the formula
AR=modu̲sTVRTNR
Next Step Substitute values of Variables
AR=modu̲s7808
Next Step Prepare to Evaluate
AR=modu̲s7808
LAST Step Evaluate
AR=97.5

Average Return on Investment Formula Elements

Variables
Functions
Average Return
Average Return refers to the typical rate of return earned on an investment or portfolio over a specific period of time.
Symbol: AR
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Total Value of Return
Total Value of Return represents the overall gain or loss on an investment over a specific period.
Symbol: TVR
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Total Number of Returns
Total Number of Returns refers to the count of individual returns or instances within a dataset or time period.
Symbol: TNR
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
modulus
Modulus of a number is the remainder when that number is divided by another number.
Syntax: modulus

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How to Evaluate Average Return on Investment?

Average Return on Investment evaluator uses Average Return = modulus(Total Value of Return)/Total Number of Returns to evaluate the Average Return, The Average Return on Investment is a fundamental metric used to assess the profitability of an investment over a specified period. Average Return is denoted by AR symbol.

How to evaluate Average Return on Investment using this online evaluator? To use this online evaluator for Average Return on Investment, enter Total Value of Return (TVR) & Total Number of Returns (TNR) and hit the calculate button.

FAQs on Average Return on Investment

What is the formula to find Average Return on Investment?
The formula of Average Return on Investment is expressed as Average Return = modulus(Total Value of Return)/Total Number of Returns. Here is an example- 97.5 = modulus(780)/8.
How to calculate Average Return on Investment?
With Total Value of Return (TVR) & Total Number of Returns (TNR) we can find Average Return on Investment using the formula - Average Return = modulus(Total Value of Return)/Total Number of Returns. This formula also uses Modulus (modulus) function(s).
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