Return on Annuity Calculator

Calculate Return on Annuity



Formula

To calculate the return on annuity:

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

Where:

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:

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:

Using the formula:

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

The Return on Annuity is 25%.