Expected Rate of Return Calculator Tool

Expected Rate of Return Calculator

Expected Rate of Return Calculator

Expected Rate of Return: %

Formula: Expected Rate of Return = (Investment Return / Initial Investment) × 100

Expected Rate of Return Calculator
Parameter Description Example Value
Possible Return 1 The value of the first possible return. 10%
Probability 1 The probability of the first possible return occurring. 0.4
Possible Return 2 The value of the second possible return. 5%
Probability 2 The probability of the second possible return occurring. 0.6
Expected Rate of Return The weighted average of all possible returns.
Formula: (Possible Return 1 * Probability 1) + (Possible Return 2 * Probability 2)
7%

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