Investors use rate of return to understand the earnings or losses on an investment in a specified period of time. Learn more about how it’s calculated.

Time weighted rate of return and IRR (internal rate of return) are identical where there have not been any contributions or distributions from a portfolio during the measurement period.

How to Calculate Inflation-Adjusted Prices To find out how inflation has affected the value of money over time, calculations can be done by hand or using spreadsheets.

Either method of calculation delivers the operating income figure that is divided by revenue to bring in the operating margin.