# Rate of Return Calculator

## What is Rate of Return Calculator?

A 'Rate of Return Calculator' is an online tool which finds the rate of return in percentage for the given investment, returns, and the time period. Cuemath's 'Rate of Return Calculator' helps you to find the rate of return within a few seconds.

## How to Use Rate of Return Calculator?

Follow the below steps to find the rate of return.

• Step 1: Enter the invested money, return money, in the input boxes.
• Step 2: Click on "Calculate" to find the rate of return.
• Step 3: Click on "Reset" to enter the new set of values.

## How to find the Rate of Return?

The following formula helps to find the rate of return.

Rate of return = (Return Money - Invested Money)/Invested Money ×100

The rate of return obtain is a percentage value and need to have a % symbol after the answer.

Let us look at the following example to understand more about the rate of return.

### Solved Example:

Joseph invests $5000 in the share of a company and receives$8000 by selling the shares.  Find his rate of return.

### Solution:

The invested amount is $5000 and the returns is$8000.  This is for a time period of 3 years.

Let us use the below formula to find the rate of return.

Rate of return = (Return Money - Invested Money)/Invested Money ×100

= (8000 - 5000)/5000 × 100

= 3000/5000× 100

= 3/5 × 100

= 60%

Therefore the rate of return is 20%.

Now, try the calculator to find the rate of return for the following values.

a)  $870 has been invested and the return amount is$1280

b)  $1250 Yen has been invested, and the return amount is$1480