Posted by Marty Dickinson on Nov 9, 2010
Just making a post on my site for myself to use this formula next time I forget. I made an investment in July 2010 and received an email notice today, November 2010, that I’ll be getting a check any day now for my first return. So, I thought, how do I calculate my return on investment again? Well, it came out to 150% of a return. And, here’s how I got that number; I had to look it up to make sure I had it right, haa, because that’s a pretty bad-ass return dude. Here it is:
Percentage Change = (Ending Value – Beginning Value)/Beginning Value X 100
So, Say I put $10,000 into an investment.
And, six months later, I get $15,000 in return over a 5 year period. That example…even over 5 years…isn’t typical, but just using this as an example.
The formula would look like this:
Percentage Change = ($15,000 – $10,000)/$10,000 X 100
Calculating the value in parenthesis first, that would be: a 50% ROI.
I’m willing to tell you what my investment was (and it was no where close to $10,000!!), let me know. Just friend-up with me on facebook so that we can talk to each other.