Finance

Holiday Return on Investment Calculator (10 Years)

Calculate return on investment as a percentage. This holiday version uses a 10-year planning term as its starting point.

The "Return" percentage shows the total gain or loss on the amount invested, as a percentage of that amount, 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 10 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 10 years, not a yearly rate.

As an illustration only, not the output of this page, the annualised rate behind the same result is about 4.14% a year, because $15,000 divided by $10,000 is 1.50, and the 10th root of 1.50 is about 1.0414. Over 10 years the yearly pace is steadier and easier to judge. A fund that reached this result over a decade should be checked against a decade of rising airfares, hotel rates and spending money, not against a single good holiday season.

Who this term suits for a holiday saver: a couple saving for a milestone trip about 10 years away, such as an anniversary holiday or a long-planned overseas tour, checking whether the fund has kept pace with travel costs over the decade.

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 holiday 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.

Why does the same 50.00% look smaller over 10 years?
Because the same gain is spread over twice as many years. As an illustration only, the annualised rate is about 4.14% a year over 10 years, against about 8.45% a year over 5 years, even though the total return is the same 50.00%.

Is 4.14% a year enough to keep a holiday fund ahead of rising travel costs over 10 years?
Only if travel costs rose by less than that a year on average. If fares and hotels rose faster, the fund may buy less holiday than it did at the start, even though the money figure grew.

How should I compare a 10-year holiday return with a 5-year return after a second holiday?
Compare annualised rates over the same period and with the same risk, and count what was actually spent on holidays in between. A fund drawn on for a second trip is not the same as a fund left untouched for 10 years.

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