Finance

Car Return on Investment Calculator (15 Years)

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

The Return figure is the total percentage gain or loss on the amount invested over the whole 15 years, not a yearly rate: a positive figure means the final value is higher than the amount invested, and a negative figure 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. That is a modest result once it is spread over fifteen years: the value would need to grow by about 2.74% every single year, steadily, to double in 15 years. Over this long a period, servicing, repairs and insurance have usually cost far more than the $5,000 gain.

Who this term suits for a car owner: an owner who restored a classic over many years and wants to judge whether the finished value, after restoration spending that this formula does not count, actually beat simply holding the money.

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 car 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 car?
Only on paper. As an illustration only, it is about 2.74% a year, since the 15th root of 1.50 is about 1.0274, and 15 years of servicing, repairs, insurance and storage usually cost far more than the $5,000 gain.

What costs can eat into a 15-year car ROI?
Servicing, tyres, brakes, insurance, storage, restoration and parts, plus any loan interest if the car was bought on finance. None of these are counted in this formula, which only compares the two values you enter.

Should a restoration count in a 15-year car ROI?
Yes, honestly it should. If you spent money restoring the car, add that spending to the amount invested before judging the result, or the 50.00% figure will flatter a restoration that actually lost money.

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