Finance

Shop Return on Investment Calculator (10 Years)

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

This Return is the total gain over the whole period as a percentage of the amount invested, not a yearly rate; a positive figure means the final value is higher than the amount invested.

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 equals $5,000 divided by $10,000, times 100, which is 50.00%. That is the calculator's own result for these defaults, and it is the same on every page in this group because the term is not an input: only the invested amount and the final value decide the answer.

As an illustration only, not the output of this page, the steady yearly rate that would grow $10,000 to $15,000 over 10 years, if growth were perfectly even every year, is 4.14% a year. The simple average, 50.00% divided by 10, is 5.00% a year, which ignores compounding and overstates the steady rate. The illustration is there so the same 50.00% total can be judged honestly over different lengths of time.

Who this term suits for a shop owner: a shop midway through a lease, weighing a second refit or a small expansion, such as extra shelving, a second till point, or extended opening hours, and checking whether the earlier money has earned its keep over about 10 years.

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 shop 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% look smaller over 10 years than over 5 years?
Because the same $5,000 gain is spread over twice as long. The steady yearly illustration falls from 8.45% over 5 years to 4.14% over 10 years, even though the page output stays at 50.00%.

Should a shop compare ROI figures over different periods?
Only with care. Compare returns over the same period and with the same risk, as the original FAQ says. A 50% return over 10 years and a 50% return over 5 years are different results wearing the same number.

What if the final value reaches $20,000 instead of $15,000?
Then the return is $20,000 minus $10,000, divided by $10,000, times 100, which is 100.00%. Doubling the money is a 100% return, not a 200% return, because the original $10,000 is counted once.

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