How to calculate payback

To think that the ability to calculate the return should have only economists and businessmen, is fundamentally wrong. Each family is investing money in apartments, houses, cars and Bank deposits. All it is capable of after some time, grow in value and benefit to their owners. Therefore, to talk about return on investment and can be with friends, with colleagues, and neighbors on the landing. And it is not surprising if they don't know the phrase "return on investment", because not everyone can be economists and businessmen.

You will need

• calculator
• - handle
• - a sheet of paper

Instruction

1. For home use the payback calculation is extremely simple and unpretentious. To calculate the payback, you need the value of the invested funds divided by the amount of profits. The obtained value will show the period of time during which there will be payback.
   For example, we bought an apartment on the first floor of a residential building over 3 000 000 RUB 600 000 we spent for repair and bureaucratic procedures and the arrangement of the adjacent territory. Then, by submitting the Declaration, handed over the premises to the lessee, who is to pay the monthly utilities and the amount of 40 000 rubles.
   Thus, our investments amounted to 3, 600, 000. And the monthly profit of the project is 40 000 rubles. For the full payback of the investment will be required to surrender our space for rent for (3 600 000 / 40 000 90 months, or 7.5 years.
2. Another example. Each invites us to engage in cargo transportation. They will need the car GAZelle, which have to be purchased. Suppose that the value of the monthly profits from the cargo after all expenses for repairs and fuel are expected to be about 40 000 RUB. let's Say we buy a used GAZelle for 300 000 rubles.
   Thus, the ROI will come through the (300 000 / 40 000 a) 7.5 months.
3. In addition, the ROI can be compared, choosing more lucrative opportunities. Compare the income from the GAZelle from the previous example, with income on Bank deposits at a rate of 10.5% per annum.
   For ease of comparison, take the amount of the Deposit equal to the cost of the GAZelle, 300, 000. Assume that, under the terms of the Bank, interest is paid at maturity. Thus, after 1 year, the amount of our investment will grow to (300 000 * 10,5%) 31 500 rubles. And we will have 331 500 rubles.
   For 12 months of work in freight, we will receive (40 000 x 12) 480 000 RUB. From a mathematical point of view, this means that in our examples it is more profitable to invest in transportation, and not to the Bank.
   I hope that now you will make financial decisions with greater rationality.