Return on Investment Calculator: Made Easy to Understand

Return on Investment Calculator: Made Easy to Understand

#Compounding return calculator #Formula for calculating return on investment #Investment calculator

Hello, today we're going to be learning about the return on investment calculator. Return on investment can seem intimidating, but the more we understand and utilize it, the better we can manage our investment performance.

1. What is a return on investment calculator?

An investment return calculator is exactly what it sounds like: a tool that shows you how much your invested assets have grown as a percentage. This return is a measure of how effectively you've managed your money.

2. How to Calculate Return on Investment

Return on investment is simply "how much money you made." Here's the formula for calculating it

Return on investment (%) = (current value - initial investment) / initial investment * 100

3. Example of return on investment calculation

For example, let's consider a case where you invested 1 million won, and after one year, you have 1.2 million won. In this case, you can calculate it as follows

Return on investment (%) = (120 - 100) / 100 * 100 = 20

In this case, the return on investment would be 20%, which means that the money you invested grew by 20%.

4. How to use the return on investment calculator

Return on investment calculators work based on the formulas described above. Most return on investment calculators will automatically calculate your return on investment after you enter your initial investment and its present value.

5. Wrapping up

Calculating our return on investment is an important step in understanding exactly how our investments are performing. It allows us to determine which investments have done well and which ones we should reconsider.

Investing is complex and challenging, but there are many tools and information that can help us. One of them is the return on investment calculator, which can make your investment strategy more robust.

Until then, happy investing!

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This concludes our explanation of the "Return on Investment Calculator". If you don't understand something or have additional questions, feel free to leave a comment. We'll see you next time, and thank you.


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