Return on Annuity Calculator

Formula

To calculate the return on annuity:

\[ ROA = \left( \frac{CV - C}{C} \right) \times 100 \]

Where:

$ROA$ is the Return on Annuity (\%)
$CV$ is the Current Value (\$)
$C$ is the Contribution (\$)

What is Return on Annuity?

The return on annuity is a measure of the profitability of an annuity investment. It is calculated by comparing the current value of the annuity to the total contributions made. This metric helps investors understand the performance of their annuity over time.

Example Calculation 1

Let's assume the following values:

Current Value ($CV$) = $120,000
Contribution ($C$) = $100,000

Using the formula:

\[ ROA = \left( \frac{120,000 - 100,000}{100,000} \right) \times 100 = 20\% \]

The Return on Annuity is 20%.

Example Calculation 2

Let's assume the following values:

Current Value ($CV$) = $150,000
Contribution ($C$) = $120,000

Using the formula:

\[ ROA = \left( \frac{150,000 - 120,000}{120,000} \right) \times 100 = 25\% \]

The Return on Annuity is 25%.