Enter the current value of TIPS (\$) and the initial TIPS purchase price (\$) into the Return on TIPS Calculator. The calculator will evaluate and display the Return on TIPS.

## Return on TIPS Formula

The following formula is used to calculate the Return on TIPS.

ROT = (CVT-PPT) / PPT * 100

• Where ROT is the Return on TIPS (%)
• CVT is the current value of TIPS (\$)
• PPT is the initial TIPS purchase price (\$)

## How to Calculate Return on TIPS?

The following example problems outline how to calculate Return on TIPS.

Example Problem #1:

1. First, determine the current value of TIPS (\$).
• The current value of TIPS (\$) is given as: 60.
2. Next, determine the initial TIPS purchase price (\$).
• The initial TIPS purchase price (\$) is provided as: 50.
3. Finally, calculate the Return on TIPS using the equation above:

ROT = (CVT-PPT) / PPT * 100

The values given above are inserted into the equation below and the solution is calculated:

ROT = (60-50) / 50 * 100 = 20.00 (%)

Example Problem #2:

For this problem, the variables needed are provided below:

current value of TIPS (\$) = 70

initial TIPS purchase price (\$) = 35

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.

ROT = (CVT-PPT) / PPT * 100 = ?