basic

Average Accounting Rate of Return (ARR) Calculator

ARR = Average annual profit / Average investment.

Calculates ARR = average annual accounting profit / average book value of investment. Simple payback-related metric used alongside NPV and IRR.

Priya Venkatesan By Priya Venkatesan
Published Last reviewed 1 min read

Inputs

$
$
$

Results

Enter values and click Calculate to see results.
Was this helpful?

How to use this calculator

  1. Fill in the inputs above using the units you already have.
  2. Values update automatically as you type — no submit button needed.
  3. Hover any result row for the underlying formula and intermediate values.

Formula

ARR = Avg annual profit / Avg investment

In depth

Calculates ARR = average annual accounting profit / average book value of investment. Simple payback-related metric used alongside NPV and IRR.