How Do You Calculate Growth Rate Per Year?
If you’re investing in the stock market or other long-time investments that yield dividends or earnings over time, it behooves you to know how much of a return those investments are yielding. Your accountant or stock broker can calculate these figures for you, but you can also calculate them yourself with any scientific calculator that’s capable of handling decimal exponents. This is a quick way of verifying the figures from your accountant or calculating returns as you decide where to invest your money. Add together the net proceeds and dividends from your investment. This can be calculated over any period of time, so for example, if you want to calculate simple returns for the last five, 10 or 12 years, add in the proceeds and dividends from the last five, 10 or 12 years respectively. Divide the sum from Step 1 by the total cost of the investment in question. Don’t forget to figure this amount over the same time period that you used in Step 1; if you try to compare the total cost ove
