Investment Calculators
Make informed investment decisions with our suite of financial calculators
ARR Calculator
Estimate the average income generated per room per night to evaluate pricing strategies.
How much do you want to invest?
Average Room Rate (Per Night)
Average Rate of Return (ARR) Calculator
Estimate the average annual return on your investment over its lifetime.
Purpose
This calculator helps investors assess the average profitability of an investment based on annual income and initial cost.
Formula
ARR is calculated by dividing the average annual profit (after taxes and depreciation) by the initial investment cost, then multiplying by 100 to express it as a percentage.
Example
If a property generates an average annual accounting profit of ₹3,00,000 and the initial investment was ₹30,00,000, then ARR = (3,00,000 / 30,00,000) × 100 = 10%.
Use Cases
- Comparing profitability of multiple property investments
- Assessing long-term performance of real estate projects
- Supporting budgeting and ROI decision-making
- Evaluating investment opportunities without considering cash flow timing
- Using in feasibility studies for development projects
Additional Information
ARR does not account for the time value of money. For more precise investment evaluations, consider using NPV or IRR calculators.