Finance

Business Return on Investment Calculator (15 Years)

Calculate return on investment as a percentage. This business version uses a 15-year planning term as its starting point.

The Return shown is the total percentage gain on the amount invested over 15 years, so a positive percentage means the final value is higher than the amount invested, and a negative percentage means it is lower.

Formula

Return equals final value minus invested amount, divided by invested amount, times 100.

How it works

A positive return means the final value is higher than the amount invested.

Worked example

Amount invested $10,000, final value $15,000, term 15 years. First, the gain is $15,000 minus $10,000, which is $5,000. Using the page formula, return is $5,000 divided by $10,000, times 100, which is 50.00%. That is the total return over the whole 15 years, not a yearly rate. As an illustration only, not the output of this page, the annualised rate behind the same result is about 2.74% a year, because $15,000 divided by $10,000 is 1.50, and the 15th root of 1.50 is about 1.0274.

Who this term suits for a business: a manufacturer or wholesaler planning a production line, a warehouse fit-out, or a long equipment lease, where the investment only pays back slowly and the owner must test whether 15 years of patience was worth it.

FAQs

What is a good ROI?
There is no single good figure. Compare returns over the same period and with the same risk before deciding.

Is this business calculator exact?
No, it is an estimate for planning only, based on the numbers you enter.

Are these figures financial advice?
No, they are estimates for planning only, not financial advice. Check with a qualified adviser for decisions involving large sums.

Is 50.00% over 15 years still a win for a business?
It is a modest win at best. As an illustration only, not the output of this page, the annualised rate is about 2.74% a year, which is barely above a slow rise in prices, so the business should check whether a shorter project or a cheaper machine would have done better.

What risk was taken for 2.74% a year?
Fifteen years of risk: machines wearing out, suppliers changing, customers moving on, and money locked away that could not be used for stock or wages. A low annualised return over a long term means that risk was barely rewarded.

Should a business add more money or wait longer after 15 years?
First check why the return is only 50.00% after 15 years. Adding more money to a slow project makes the problem bigger, while waiting longer only helps if sales are genuinely rising. Review the product line before either choice.

Estimates only, not financial advice. Figures are approximate and do not include all fees, taxes, or changing rates unless stated.