Accounting Rate of Return Calculator
How does the Accounting Rate of Return Calculator work?
Given an initial investment and a set of returns, this calculates the Accounting Rate of Return
This calculator has 1 input.
What 1 formula is used for the Accounting Rate of Return Calculator?
- Average Returns = Σ Returns / n
Average Rate of Return (ARR) = Average Returns / Initial Investement
For more math formulas, check out our Formula Dossier
What 5 concepts are covered in the Accounting Rate of Return Calculator?
- accounting rate of return
- financial ratio used in capital budgeting
Average Return / Average Investment
- a fact or a rule written with mathematical symbols. A concise way of expressing information symbolically.
- an asset or item acquired with the goal of generating income or appreciation.
- a specified amount in or for every hundred. one part in every hundred.
n% = n/100
- a performance measure used to evaluate the efficiency of an investment or compare the efficiency of several investments.
Accounting Rate of Return Calculator Video