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Accounting Rate of Return Calculator
Enter returns
50000 150000 80000 20000
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?
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