Expected Rate of Return Calculator

Enter the return rate and probability of up to 5 previous years to determine the expected rate of return of an investment.

Expected Rate of Return Formula

The following formula is used to calculate the expected rate of return of an asset.

ER = Sum ( Ri * Pi)

  • Where ER is the expected rate of return
  • Ri is the returns of each consecutive year
  • Pi is the probability of those returns occurring on any given year.

What is the expected rate of return?

An expected rate of return is a percentage return on an asset any investor predicts will happen on average. That is if an investor buys a stock, they expect to see a certain return the next year on average. What the actual return is my vary, but on average it should be close to the expected rate of return.

How is the expected rate of return calculated?

The expected rate of return is calculated using the formula above. In short, it’s the sum of the average return rate and their probabilities over a given number of years. For example, let’s say there are 2 years we are analyzing. One year it returns 5%, at a 75% probability, and the next it earns 6% at a 80% probability. The expected return rate would be 5%*35% + 6% * 25% = .0325 = 3.25%.

expected rate of return calculator

Related Terms

expected rate of return calculator
expected rate of return formula
how to calculate expected rate of return
expected return formula
how to calculate expected return
expected return calculator
expected return of portfolio
portfolio expected return calculator
expected return formula excel
how to calculate expected return of a stock
expected market return formula
portfolio expected return formula
how to find expected return
how to calculate expected return of a portfolio
expected return formula beta
how to calculate expected return of a stock from historical data
how to calculate expected market return
how to find expected rate of return
expected return excel
how to calculate expected return in excel
expected rate of return formula finance
calculate expected return on stock
estimated rate of return
expected return equation
expected rate of return in sip
how to find expected return on stock
how to find expected market return
how do you calculate expected return
expected return on stock formula
capm expected return formula
average rate of return expected on investments during retirement years
expected rate of return excel
expected return calculator beta
how to calculate expected return of portfolio
expected rate of return during retirement
how to find expected return of a portfolio
calculate expected returns for the individual stocks
expected rate of return on market portfolio
expected market return calculator
calculate the expected return for the two stocks
expected rate of return equation
expected return formula finance
how to calculate expected market return in capm model
calculate the expected return for stocks a and b
expected return of a stock formula
how to calculate expected return of a stock in excel
calculating expected return of a portfolio
formula of expected rate of return
how to calculate risk free rate with beta and expected return
expected return and standard deviation calculator
expected return portfolio calculator
how to find expected return on portfolio
calculate expected return in excel
how to calculate expected return of market
how to calculate expected return on investment
required rate of return formula capm
expected return on investment formula
how to find expected return of a stock
how to find expected return on market
expected return on assets formula
expected return formula in excel
expected rate of return on portfolio
expected return on investment calculator
how to find the expected return of a stock
expected return on market portfolio formula
how to calculate expected return on market
expected annual return formula
how to calculate expected return and standard deviation
how to find expected return in excel
how to calculate expected rate of return of a stock
how to compute expected return
how to calculate expected rate of return in excel
how to calculate expected return with beta
how to calculate stocks expected return
calculate the expected return for each stock
calculate risk free rate with beta and expected return
how to find the expected return
bond expected rate of return calculator
expected return of stock calculator
expected rate of return formula excel
how to calculate expected return on stock
formula for expected return of a portfolio
how to calculate market expected return
how to calculate expected return on the market
how do you calculate expected rate of return
how to find expected return of portfolio
how to calculate expected return without probability
bond expected rate of return formula
calculating expected return for a portfolio
how to calculate expected return using capm
calculate the stock’s expected return
expected rate of return calculator stock
how to calculate expected return of stock
portfolio expected return excel
expected dollar rate of return formula
expected rate of return of portfolio
how to calculate expected rate of return on financial calculator
expected return formula stock
how to find the rate of return on a stock
how to find the expected return of a portfolio
capm expected return calculator
expected rate of return of a portfolio
calculation of expected rate of return
estimated stock market returns
how to calculate expected return on excel
how to calculate expected return on a stock
calculate the expected return for stock a
stock expected rate of return calculator
how to calculate a stock’s expected return
find risk free rate with beta and expected return
sip expected rate of return