Return on Art Calculator

Formula

The formula to calculate the Return on Art (ROArt) is:

\[ ROArt = \left( \frac{AV - P}{P} \right) \times 100 \]

Where:

$ROArt$ is the return on art (%)
$AV$ is the current art appraisal value (\$)
$P$ is the purchase price of art (\$)

What is Return on Art?

Return on Art (ROArt) is a measure of the profitability of an art investment. It is calculated by comparing the current appraisal value of the art to its original purchase price. This metric helps investors determine the percentage gain or loss on their art investment over time. A positive ROArt indicates a profitable investment, while a negative ROArt suggests a loss.

Example Calculation

Let's assume the following values:

Current Art Appraisal Value (AV) = \$50,000
Purchase Price of Art (P) = \$30,000

Using the formula to calculate the Return on Art (ROArt):

\[ ROArt = \left( \frac{AV - P}{P} \right) \times 100 = \left( \frac{50,000 - 30,000}{30,000} \right) \times 100 = \left( \frac{20,000}{30,000} \right) \times 100 = 66.67\% \]

The Return on Art (ROArt) is 66.67%.