1. What is a Return Calculator?

Definition: This calculator measures the percentage return between two values, typically used for financial investments or performance metrics.

Purpose: It helps investors, analysts, and business owners evaluate growth or decline between two periods.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( R \) — Return percentage
• \( V_{new} \) — New value (current value)
• \( V_{old} \) — Old value (original value)

Explanation: The formula calculates the relative change between two values expressed as a percentage of the original value.

3. Importance of Return Calculation

Details: Return percentage is fundamental in finance for evaluating investment performance, business growth, and economic indicators.

4. Using the Calculator

Tips: Enter both values in the same currency (e.g., USD). The old value must be greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative return mean?
A: A negative return indicates a decrease in value from the old to new measurement period.

Q2: Can I use this for stock investments?
A: Yes, this is commonly used to calculate investment returns when you know the purchase price and current value.

Q3: How do I interpret a 50% return?
A: A 50% return means the new value is 150% of the original (a 50% increase).

Q4: What time periods can I compare?
A: You can compare any two points in time - days, months, years, etc. The calculator doesn't consider time, just value change.

Q5: Why multiply by 100?
A: Multiplying by 100 converts the decimal result to a percentage, which is more intuitive for most users.