Have you always wondered what a return on investment calculator is? Well, it is nothing but the golden key to easily calculating the projected return on investment for each of your different investments. An investment project is as good as the return on investment it offers.
While a project might seem to be the best investment opportunity you could possibly explore, it is the return on investment calculation which lets you gauge a clear idea of whether a project is the right investment decision for you or not. A return on investment calculator makes it all easy!
A calculator rids you of the hassle of trying to put different values into the ROI formula, and trying to work out the answer. A calculator only requires you to put values in certain fields and the software is designed to calculate the return on investment, for your investment.
The calculator helps you figure out the profits and loss of your intended investment, and assists you in estimating the regular ROI, along with the annual ROI of your investment.
A calculator only requires a minimum amount of information to efficiently calculate the accurate ROI for your investment portfolio. To find out the actual return on investment for an investment opportunity that you want to experiment with, you only need three quantities, which are:
- The present or futuristic value of the proposed investment
- The original investment amount you intend to put in a venture or project, and
- The time period agreed upon for the elapse of the investment opportunity.
The ROI calculator gives you results for returned value as well as gain or loss on an investment. A return value is the total amount that the investment will yield; while a gain or loss is determined by subtracting the actual returned value from the actual investment amount.
In this way, an ROI calculator makes life easy and ensures the right decisions with a transparent view of the total worth of a project.
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