Calculate rate of return

The rate of return (ROR), sometimes called return on investment (ROI), is the ratio of the yearly income from an investment to the original investment. The initial amount invested, the amount of subsequent receipts, and any final receipt, all play a factor in determining the return. Use this rate of return calculator to calculate these returns.

Information and Assumptions

Number of periods to consider ?

The number of days/months/years you want the analysis to consider.

Initial investment (-) ?

The amount of the initial income received or payment made. Enter a positive value for cash inflow and negative value for cash outflow.

Initial Receipt/Payment

Regular receipts, if applicable ?

The amount of the regular income received or regular payments made, if any.

Regular Receipts/Payments

Final receipt, if applicable ?

The amount of the final income received or payment made, if any.

Final Receipt/Payment

Enter your values and select Calculate.

The IRR figure is the single annualized rate that makes your initial investment, any recurring deposits or withdrawals, and your final receipt balance out mathematically. It is not a guaranteed yield — it is the rate implied by the numbers you entered, looking backward or as a planning estimate looking forward. There is no universal 'good' IRR; what counts as strong depends on what else you could have done with the money over the same period.

Three inputs do the most work here: the initial investment, the final receipt, and the number of periods between them. A larger gap between what went in and what came out, or a shorter term over which that gap appears, pushes the IRR higher. If the result looks off, these are the first values worth double-checking.

This calculation leaves out taxes, fees, inflation, and any variation in how the money was actually invested along the way — it treats the cash flows as fixed facts, not estimates of future market behavior. If the 'computable' result shows the pattern could not be solved, it usually means the cash flows do not change sign in a way that allows a unique rate to exist.

Treat this as one data point among several. It is worth revisiting if your actual deposits, withdrawals, or the final payout change, or when you want to compare this investment's performance against an alternative. Having a real number to anchor the comparison is already most of the work — refining the inputs over time only sharpens it.

This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. The calculations do not infer that the company assumes any fiduciary duties. The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.