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Accounting Rate of Return Calculator

Enter returns

  

Enter Initital Investment


  

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?

  1. 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
formula
a fact or a rule written with mathematical symbols. A concise way of expressing information symbolically.
investment
an asset or item acquired with the goal of generating income or appreciation.
percent
a specified amount in or for every hundred. one part in every hundred.
n% = n/100
return
a performance measure used to evaluate the efficiency of an investment or compare the efficiency of several investments.



Accounting Rate of Return Calculator Video