## Simple Investment ROI Calculator by xedricity

This is the easiest and the simpliest investment ROI calculator you could find online. You can quickly calculate your return of investment by straight interest or by compounding investment method made by yours truly xedricity. If you have questions/suggestions regarding this tool please email me using the contact button above.

### How to use:

Simply enter the following values; `amount` which is the amount you have investment, `Percentage per annum ` this is the yearly interest rate of your investment provided by your investment institution, and the `terms` which is the total years of your investment to mature.

### How the straight interest is calculated?

Straight interest calculation method is done by multiplying the `amount` invested by the `percentage per annum` then multiplying the product by the `term` which you will get the final total `gain` of your investment. Then we add the `gain` to the `amount` you have initailly invested.

Example:

• Amount : \$100
• Percentage per annum : 5.5 (%)
• Term : 10 (yrs)

100\$ * 5.5% = 5.5\$ * 10 yrs = 55\$ gain + 100\$ initial investment = 155\$ final amount

### How the compounded interest is calculated?

Compounded interest method is calculated by multiplying the `amount` invested by the `percentage per annum` then adding the `amount` to its product. The sum would be then multiplied by `percentage per annum` and add the product to the sum of its second tier product. This goes on and on until the `term` has been reached. For better understanding see the example formulation below.

Formula: `((Initial investment * Interest rate) + initial investment)ʸᵉᵃʳˢ`

Example:

• Amount : \$100
• Percentage per annum : 5.5 (%)
• Term : 5 (yrs)

Yearly Breakdown:

• 100\$ * 5.5% = 5.5\$ + 100\$ = 105.5\$ (year 1)
• 105.5\$ * 5.5% = 5.80‬\$ + 105\$ = 111.30\$ (year 2)
• 111.30\$ * 5.5% = 6.12‬\$ + 111.30\$ = 117.424\$ (year 3)
• 117.42\$ * 5.5% = 6.46\$ + 117.42\$‬ = 123.88\$ (year 4)
• 123.88\$ * 5.5% = 6.81\$ + 123.88\$ = 130.6934‬\$ (year 5)