Identify the initial investment amount
Identify the final value of the investment
Subtract the initial investment from the final value to find the gain or loss
Divide the gain or loss by the initial investment
Multiply the result by 100 to convert it to a percentage
Use the formula: Rate of Return = [(Final Value – Initial Value) / Initial Value] × 100
If there are multiple periods, calculate annualized return if needed
Include dividends, interest, fees, and other cash flows if applicable