The formulas used on ROIcalculator.site are based on standard mathematical arithmetic and universally accepted corporate finance equations. We do not invent proprietary or speculative estimation methods.
Where specific metrics rely on established definitions (such as Compounded Annual Growth Rate or fee drag), we reference reputable educational literature from recognized regulatory and financial education institutions.
Mathematical Arithmetic vs. Financial Modeling
Simple Return on Investment ((Gain - Cost) / Cost) is a fundamental mathematical ratio that requires no proprietary framework. However, interpreting duration, fees, and geometric compounding benefits from standard frameworks established by industry regulators and academic literature:
U.S. Securities and Exchange Commission (SEC) — Investor.gov
Federal guidance on understanding compounding growth, annualized returns, and the destructive impact of ongoing advisory and management fees.
Visit Resource ↗Corporate Finance Institute (CFI)
Standard corporate finance definitions for simple ROI, geometric mean compounding, cash-on-cash yield, and capital budgeting ratios.
Visit Resource ↗CFA Institute
Professional guidelines governing time-weighted rate of return, annualized performance reporting, and external cash-flow adjustments.
Visit Resource ↗Financial Industry Regulatory Authority (FINRA)
Educational literature outlining how ongoing fund expense ratios, front-end loads, and advisory fees drag down net compounding over long horizons.
Visit Resource ↗