Finance

Car Return on Investment Calculator (25 Years)

Calculate return on investment as a percentage. This car version uses a 25-year planning term as its starting point.

The Return figure is the total percentage gain or loss on the amount invested over the whole 25 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 25 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 25 years, not a yearly rate. As an illustration only, not the output of this page, the annualised rate behind the same result is about 1.64% a year, because $15,000 divided by $10,000 is 1.50, and the 25th root of 1.50 is about 1.0164. That is a weak result once it is spread over a quarter of a century: the value would need to grow by only about 1.64% every single year, steadily, to double in 25 years. Storage, insurance and maintenance over 25 years will very likely have cost more than the $5,000 gain.

Who this term suits for a car owner: a collector who has stored a survivor car for a quarter of a century and needs to set the $5,000 gain against 25 years of storage, insurance, servicing and parts before calling it a win.

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.

How does storage and insurance change the reading at 25 years?
A lot. As an illustration only, the annualised rate is only about 1.64% a year, since the 25th root of 1.50 is about 1.0164, while 25 years of storage rent, insurance and servicing will very likely exceed the $5,000 gain on their own.

What if I restored the car during the 25 years, does this formula still fit?
Only if you count the restoration spending as part of the amount invested. The formula itself just compares two values, so entering only the purchase price while ignoring restoration spending will overstate the true return.

Should a 25-year car plan be reviewed, not left alone?
Yes. Markets for classic cars change, storage costs rise, and parts become harder to find. Review the value, the running costs and the reason for keeping the car every few years, rather than trusting a 25-year headline figure.

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