Rate of return on investment
This will calculate: if you know the loan amount and the periodic payments, this will calculate your return on investment.
Example: you are willing to loan me $35,000 and I will pay you back in equal payments of $800 per month for 5 years. What is your rate of return — or put another way, what interest rate am I paying?
Please note: pressing i gives the monthly return of 1.10. Multiply by 12 for the annual return of 13.20.
Prefer to let the site do the arithmetic? Use the rate of return form.
- HP-12C keystrokes
- 1 5 g n
- 2 35000 PV
- 3 800 CHS PMT
- 4 i = 1.10
- Then annualise the monthly rate
- 5 12 × = 13.20
CHS changes the number to a negative. On the HP-12C every cash outlay is entered as a negative, which is why the answer comes back positive — it is money you receive. g is the blue shift key — press it immediately before n or i to enter the term in months rather than years.