Treasury Practice

Calculator Corner: average rate of return

Published: Jun 2021

 

\(\mathrm{Average\: rate\: of\:return\:formula\:} = \mathrm{\frac{average\: annual\: net\: earnings\: after\: taxes} {initial \:investment}}\times\mathrm{100\%}\)

The formula for an average rate of return is derived by dividing the average annual net earnings after taxes or return on the investment by the original investment or the average investment during the life of the project and then expressed in terms of percentage.

Join our global community

Creating a free account helps us to understand our community better, and tailor our content and events to suit your needs. You can unsubscribe at any time.

Already have an account? Sign in

Search for your company; if not found, select 'Other' and enter it manually below
  • • At least 8 characters
  • • At least 1 uppercase letter (A-Z)
  • • At least 1 lowercase letter (a-z)
  • • At least 1 digit (0-9)