The formula to calculate return on investment is ROI = (gain from investment - cost of investment) / cost of investment. The subsequent result is expressed as a ratio or a percentage. More »

The simplest ROI formula divides the gains earned on an investment by its initial cost, according to Investopedia. Someone who invests $10,000 and earns $1,000 has a return on investment, known as ROI, of 10 percent beca... More »

To determine the rate of return, (W) = change in X, t= at time t, the formula would be %W = ((X*t)-(X*t)-1) divided by (X*t)-1. The return on investment (ROI) must first be determined to solve this formula. The ROI is de... More »

The simplest ROI formula divides the gains earned on an investment by its initial cost, according to Investopedia. Someone who invests $10,000 and earns $1,000 has a return on investment, known as ROI, of 10 percent beca... More »

To calculate net present value of an investment, divide the guaranteed return by 1 plus the interest rate that a different investment would bring in, and subtract the initial investment from the result. Consider a positi... More »

IRR, or internal rate of return, refers to the discount rate that, when used, results in a zero net present value of existing cash flows from an investment or project. It is used in capital budgeting to rank prospective ... More »

The compound annual growth rate, or CAGR, of an investment is calculated by dividing the ending value by the beginning value, taking the quotient to the power of one over the number of years the investment was held and s... More »