Simple Rate of Return Calculator
Calculate your investment performance using the basic percentage change formula.
Simple Rate of Return
What does this mean?
The Simple Rate of Return (SRR) is the most basic way to calculate investment returns. It measures the percentage change between the initial investment and the final value, without considering the time period or any cash flows in between.
While simple to calculate, the SRR doesn't account for the timing of cash flows or the length of the investment period. It's most useful for quick comparisons or when you have a single investment with no additional deposits or withdrawals.
Why Retail Investors Should Use Simple Rate of Return
Quick Performance Overview
The Simple Rate of Return provides a quick and easy way to assess how your investment has performed. It's the most straightforward calculation that answers the basic question: 'What percentage did my investment grow or shrink?'
Easy to Understand
Unlike more complex return calculations, the Simple Rate of Return is intuitive and easy to understand. It's the percentage change formula you learned in basic math, making it accessible for investors of all experience levels.
Useful for Single Investments
For single investments with no additional cash flows, the Simple Rate of Return provides a clear picture of performance. It's particularly useful for comparing the performance of different investments over the same time period when you haven't added or withdrawn money.