Finance

Shop Return on Investment Calculator (15 Years)

Calculate return on investment as a percentage. This shop version uses a 15-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 15 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 15 years, if growth were perfectly even every year, is 2.74% a year. The simple average, 50.00% divided by 15, is 3.33% 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 at a lease-renewal point, deciding on a major refit, such as new refrigeration, a full counter rebuild, or a premises move, and asking whether the money tied up for about 15 years has been 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 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.

Is 50% over 15 years still a good shop return?
It depends on what else the money could have done and what costs the two figures leave out. A 50% gain over 15 years is a steady yearly illustration of only 2.74%, so it should be judged slowly, not celebrated quickly.

Does this ROI include shop rent and wages?
Only if they are inside the invested amount or the final value you entered. The page itself only compares the two figures you give it, so running costs left outside the figures are invisible in the 50.00% answer.

What if the final value falls to $9,000?
Then the return is $9,000 minus $10,000, divided by $10,000, times 100, which is minus 10.00%. A negative return means the shop got back less than it put in, before any other costs are counted.

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