Return on investment is the amount that you get back for investing in something. The formula is ROI=(Profit *100)/(Investment * number of years.)
The return on investment formula:ROI=(Gain from Investment - Cost of Investment)/Cost of Investment.
The rate of return is a percentage that shows how much an investment has gained or lost over a specific period, while the return on investment is a ratio that compares the profit of an investment to its cost.
Return on investment is calculated by subtracting investment capital from the return, taking into account inflation, taxation and the time frame involved.
To calculate the rate of return on your investment, subtract the initial investment amount from the final value of the investment, then divide that result by the initial investment amount. Multiply the result by 100 to get the rate of return as a percentage.
To calculate the rate of return on an investment, you subtract the initial investment amount from the final value of the investment, then divide that result by the initial investment amount. Multiply the result by 100 to get the percentage rate of return.
To calculate the holding period return for an investment, subtract the initial investment amount from the final investment value, then divide by the initial investment amount. Multiply the result by 100 to get the percentage return.
What factors affect the rate of return of an investment at maturity?
Return on investment is the amount of profit on the invested money after deducting taxes, safety of investment is the risk factor involved in the investment. Such as risk is high safety of investment is less.
Hurdle rate
Yes the amount would be a taxable income amount after your return of investment amounts exceed your cost basis in the investment.
Investment
You can use a specialized tool called a "return on investment calculator." One of these special tools can be found here: http://www.money-zine.com/Calculators/Investment-Calculators/Return-on-Investment-Calculator/ It takes the amount of the original investment, the future value of the investment, and the time elapsed into account.