1. What is Poor Rate of Return?

Poor Rate of Return (ROR) measures the percentage loss on an investment or financial transaction. A negative ROR indicates that the investment lost value over the measured period.

2. How Does the Calculator Work?

The calculator uses the Poor Rate of Return formula:

Where:

• \( \text{End Value} \) — Current or final value of investment
• \( \text{Start Value} \) — Initial investment amount

Explanation: The formula calculates the percentage change between the starting and ending values. Negative results indicate losses (poor returns).

3. Importance of Poor ROR Calculation

Details: Calculating Poor ROR helps investors evaluate performance, compare investments, and make decisions about holding or selling assets.

4. Using the Calculator

Tips: Enter the original investment amount as Start Value and current value as End Value. The calculator will show the percentage return, highlighting negative (poor) returns.

5. Frequently Asked Questions (FAQ)

Q1: What constitutes a "poor" rate of return?
A: Any negative return is considered poor as it represents a loss of capital. The severity depends on the magnitude of the negative percentage.

Q2: How does this differ from regular rate of return?
A: Mathematically it's the same calculation, but we focus on identifying and highlighting negative (poor) returns.

Q3: Should I include additional costs in the values?
A: For accurate results, include all relevant costs (fees, taxes) in both start and end values when applicable.

Q4: What time period should I use?
A: The calculator works for any time period, but meaningful comparisons require consistent time frames (e.g., annualized returns).

Q5: Can I use this for non-investment purposes?
A: Yes, it can calculate percentage loss for any two values, such as business revenue, project costs, or asset depreciation.