Average Accounting Rate of Return – Excel Template

Ivan Kitov
Ivan Kitov

The Average accounting rate of return denotes the return expected on an investment relative to its cost. It is a quick way to calculate an investment’s profitability. To obtain the average accounting rate of return, we divide the average net income by the average book value.

Some other related topics you might be interested to explore are NPV, IRR, Payback Period, and Discounted Payback Period.

This is an open-access Excel template in XLSX format that will be useful for anyone who wants to work as a Banker, Investment Professional, Corporate Finance Practitioner, or Portfolio Manager.

You can now download the Excel template for free.

Average Accounting Rate of Return is among the topics included in the Corporate Finance module of the CFA Level 1 Curriculum.

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