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**Return on Investment**

Return on investment (ROI) is a percentage that shows profitability of an investment or investment portfolio. Return on investment calculation: CALCULATION: Return on investment = net in

http://www.investingforbeginners.eu/return_on_investment

**Power of Compounding**

Power of compounding (compound interest) is a known description for fast increase in value when investment brings steady interests and interests are reinvested. The principle of the growth is the geometric progre

http://www.investingforbeginners.eu/power_of_compounding

**Rate of Return**

A rate of return is a percentage that shows what is the profit or loss gained on some investment on annual basis. There are many ways to calculate the rate of return including internal rate of return, arithmetica

http://www.investingforbeginners.eu/rate_of_return

**cagr**Formula**cagr**formula is used to calculate 'compound annual growth rate':

**cagr**= (Value at the end / Value at the beginning) ^ (1 / Years) - 1 * Can be multiplied by 100%. Where: Value at t

http://www.investingforbeginners.eu/cagr_formula

**cagr****cagr**is used to measure return and means compound annual growth rate. This type of return measurement is very popular in investment finance because interest also earns interest and power of compounding cannot be

http://www.investingforbeginners.eu/cagr

**Internal Rate of Return**

An internal rate of return (IRR) is a ratio used very often to measure a profitability of some investment project. IRR is determined as a discount rate when NPV of the project is equal to zero. If IRR is higher t

http://www.investingforbeginners.eu/internal_rate_of_return