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Calculating return on your investments is a fundamental part of the investing process. Fortunately, calculating the rate is as easy as it is essential.

In many investments, the rate of return is stated as the interest rate that is paid to you, rendering a calculation unnecessary. For example, if you place your money in a certificate of deposit or a bond with a 3% yield, then your return is 3%.

For investments like stock, it takes a little more effort. Subtract the money you have now with the money you started with. Divide that figure by the amount you started with and that's your rate! Example:

Start: $100,000 End: $110,000

110,000 - 100,000 = 10,000.

10,000/100,000 = .10

So your rate would be ten percent!

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13y ago

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