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Rate of Return Formula

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A Rate of Return is the gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s cost. Check FAQs

RoR = (\frac{CV - OV}{OV}) \cdot 100

RoR - Rate of Return?CV - Current Value?OV - Original Value?

Rate of Return Example

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Here is how the Rate of Return equation looks like with Values.

Here is how the Rate of Return equation looks like with Units.

Here is how the Rate of Return equation looks like.

30.4348 = (\frac{3000 - 2300}{2300}) \cdot 100

30.4348 = (\frac{3000 - 2300}{2300}) \cdot 100

30.4348 = (\frac{3000 - 2300}{2300}) \cdot 100

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Important Formulas of Investment » fx Rate of Return

Rate of Return Solution

Follow our step by step solution on how to calculate Rate of Return?

FIRST Step Consider the formula

RoR = (\frac{CV - OV}{OV}) \cdot 100

Next Step Substitute values of Variables

∴

RoR = (\frac{3000 - 2300}{2300}) \cdot 100

Next Step Prepare to Evaluate

∴

RoR = (\frac{3000 - 2300}{2300}) \cdot 100

Next Step Evaluate

∴

RoR = 30.4347826086957

LAST Step Rounding Answer

∴

RoR = 30.4348

Rate of Return Formula Elements

Variables

Rate of Return

A Rate of Return is the gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s cost.

Symbol: RoR

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Rate of Return

Current Value

Current Value is the current value of the item.

Symbol: CV

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Current Value

Original Value

The original value is the price at which you purchased the item.

Symbol: OV

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Original Value

Other formulas in Important Formulas of Investment category

Go Certificate of Deposit

CD = P0 Deposit \cdot {(1 + (\frac{r Annual}{n c}))}^{n c \cdot n t}

Go Compound Interest

FV = A \cdot {(1 + (\frac{i}{n}))}^{n \cdot T}

Go Capital Gains Yield

CGY = \frac{P c - P0}{P0}

Go Risk Premium

RP = ROI - Rf return

How to Evaluate Rate of Return?

Rate of Return evaluator uses Rate of Return = ((Current Value-Original Value)/Original Value)*100 to evaluate the Rate of Return, A rate of return is the gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s cost. Rate of Return is denoted by RoR symbol.

How to evaluate Rate of Return using this online evaluator? To use this online evaluator for Rate of Return, enter Current Value (CV) & Original Value (OV) and hit the calculate button.

FAQs on Rate of Return

What is the formula to find Rate of Return?

The formula of Rate of Return is expressed as Rate of Return = ((Current Value-Original Value)/Original Value)*100. Here is an example- 30.43478 = ((3000-2300)/2300)*100.

How to calculate Rate of Return?

With Current Value (CV) & Original Value (OV) we can find Rate of Return using the formula - Rate of Return = ((Current Value-Original Value)/Original Value)*100.

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Rate of Return Formula

Rate of Return Example

Rate of Return Solution

Rate of Return Formula Elements

Other formulas in Important Formulas of Investment category

How to Evaluate Rate of Return?

FAQs on Rate of Return

Variable Name