Enter the current value ($) and the contribution ($) into the Return on Annuity Calculator. The calculator will evaluate and display the Return on Annuity.
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Return on Annuity Formula
The following formula is used to calculate the Return on Annuity.
ROA = (CV – C ) / C *100
- Where ROA is the Return on Annuity (%)
- CV is the current value ($)
- C is the contribution ($)
How to Calculate Return on Annuity?
The following example problems outline how to calculate Return on Annuity.
Example Problem #1:
- First, determine the current value ($).
- The current value ($) is given as: 1500.
- Next, determine the contribution ($).
- The contribution ($) is provided as: 1000.
- Finally, calculate the Return on Annuity using the equation above:
ROA = (CV – C ) / C *100
The values given above are inserted into the equation below and the solution is calculated:
ROA = (1500 – 1000 ) / 1000 *100 = 50 (%)
Example Problem #2:
For this problem, the variables needed are provided below:
current value ($) = 5768
contribution ($) = 941
This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.
ROA = (CV – C ) / C *100 = ?
