Enter the current value ($) and the contribution ($) into the Return on Annuity Calculator. The calculator will evaluate and display the Return on Annuity. 

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:

  1. First, determine the current value ($).
    • The current value ($) is given as: 1500.
  2. Next, determine the contribution ($).
    • The contribution ($) is provided as: 1000.
  3. 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 = ?