Best Math Formula website. Search anything about Math Formula in this website.
how to calculate the average rate of return. Calculating the return One of the best methods for calculating an average return for a stock investment is the XIRR function in Excel. Determine the investments original cost and the selling price of the investment.
1-877-968-3778 Find other ways to contact us. Determine the investments original cost and the selling price of the investment. Note that the regular rate of return describes the gain or loss expressed in a percentage of an investment over an arbitrary time period.
The formula for annual return is expressed as the value of the investment at the end of the given period divided by its initial value raised to the reciprocal of the number of years and then minus one.
Note that IRR doesnt assume that the interval is years. Text Average rate of return frac text Average annual profit total profit number of years. Hide glossary Glossary Search terms Examples. This gives the investor a total return rate of 15.