TUNTON Private credit · Monterrey
ESEN
Contact
ESEN
Tool

ROI calculator

Compare what you invested against what it is worth (or was worth) at the end: total return and the equivalent annualized rate.

Include everything received: sale + rents or dividends.
Total ROI
—
Gain as a percentage of what you invested
Gain—
Annualized ROI—
Your money multiplied by—

Assumptions & method

  • Total ROI = (final value − invested) ÷ invested. Annualized = (final value ÷ invested)^(1/years) − 1.
  • Include in the final value everything received (sale, rents, dividends) and in the invested amount all costs (fees, improvements, entry taxes).
  • The annualized ROI lets you compare investments of different durations on a single metric.
  • Nominal figures: it does not discount inflation or ISR on the gain.
FAQ

The essentials, in brief

Why annualize ROI?
Because 50% over 2 years and 50% over 8 years are not the same. Annualized: ~22.5% per year versus ~5.2% per year. The annualized metric is the one you compare against market rates.
ROI or IRR?
ROI assumes a single inflow and a single outflow. If there were interim cash flows (rents, additional contributions), IRR is the correct measure: it captures the timing of each flow.
What ROI is 'good'?
One that beats your alternative at comparable risk. Against a risk-free instrument, any investment with risk should pay a premium; if it does not, the risk was taken on for free... for the other party.
Next step

Tell us about your deal

Tell us how much you need and what collateral you can offer. We will tell you frankly whether it is viable and how we would structure it.

Request via WhatsApp →