ROI is an important measure of an investment's performance but it has some drawbacks. Reviewed by Margaret James Fact checked by Suzanne Kvilhaug Return on investment (ROI) is a ratio that measures ...

Excess return refers to the return on an investment that surpasses the return of a benchmark or a risk-free rate. It measures the performance of an investment in relation to its expected or required ...

Calculating return on investment (ROI) on a rental property is essential for understanding its profitability and making informed decisions as an investor. ROI measures how much profit you’re ...

Required rate of return (RRR) gives investors a benchmark to determine the minimum acceptable return on an investment considering the risk involved. By calculating RRR, investors can assess whether an ...

One simple formula can help you estimate investment growth, understand compounding and measure the impact of inflation.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Marshall Hargrave is a stock analyst and writer with 10+ years of experience covering stocks and markets, as well as analyzing and valuing companies. Dr. JeFreda R. Brown is a financial consultant, ...

The Compound Annual Growth Rate (CAGR) is the average annual rate of return of a lump-sum investment over a specific period. The Extended Internal Rate of Return (XIRR) is a return calculation method ...