The Absolute Return Calculator is designed to help you calculate the absolute return on your investment. Absolute return measures the total gain or loss of an investment, expressed as a percentage, over a specific period. This metric is essential for investors who want to evaluate the performance of their investments without considering external benchmarks or market indices.

### Formula of Absolute Return Calculator

The absolute return is a measure of the gain or loss of an investment over a specific period of time. The formula to calculate absolute return is:

To use this formula:

- Subtract the beginning value of the investment from the ending value.
- Divide the result by the beginning value.
- Multiply by 100 to convert the result into a percentage.

### Common Absolute Return Values Table

Below is a table with general terms that people commonly search for. This table provides pre-calculated absolute return values for quick reference:

Beginning Value | Ending Value | Absolute Return (%) |
---|---|---|

1000 | 1200 | 20 |

1000 | 1500 | 50 |

1000 | 800 | -20 |

1000 | 1000 | 0 |

2000 | 2500 | 25 |

### Example of Absolute Return Calculator

Let's look at a practical example to understand how to calculate absolute return.

**Example:**

- Beginning Value: $1,000
- Ending Value: $1,200

Using the formula:

Absolute Return = ((1200 - 1000) / 1000) * 100 = (200 / 1000) * 100 = 0.2 * 100 = 20%

In this example, the absolute return on the investment is 20%.

### Most Common FAQs

**Q1: What is the difference between absolute return and relative return?****A1:** Absolute return measures the gain or loss of an investment over a specific period without comparing it to any benchmark. Relative return, on the other hand, measures the performance of an investment compared to a benchmark or market index.

**Q2: Why is absolute return important for investors?****A2:** Absolute return is important because it provides a clear picture of how much an investment has gained or lost over time. It helps investors make informed decisions based on the actual performance of their investments.

**Q3: Can absolute return be negative?****A3:** Yes, absolute return can be negative if the ending value of the investment is less than the beginning value. This indicates a loss on the investment.