![]() However, it’s rare that you simply buy and sell a stock, full-stop. In this case, the negative in front of your percentage change indicates a total loss of 33.33% of your investment. (($200 sale price – $300 purchase price) / $300 purchase price) x 100% ![]() You would calculate your percentage loss thusly: Let’s also say that you bought one share of EvilComputer, Inc. But what does it look like to incur a loss? (($300 sale price – $200 purchase price) / $200 purchase price) x 100%Īll told, you would see a 50% gain in your investment of iStock Corp. Say that you bought one share of iStock Corp for $200 and sold it for $300. Let’s give an example of these calculations in action. And if you want to see how your investment has performed over the course of a particular year or quarter, pick the market price on a day of your choice to substitute in for the purchase price. Simply substitute in the current market price for the selling price to get the same result. Keep in mind that you can calculate your gain or loss at any time, whether or not you’ve sold your investment. But if your percentage is negative, you’ve taken a total loss. If your final number is positive, that indicates a gain on your investment. Gain or loss = ((Sale price – Purchase price) / Purchase price) x 100% Once you have those, the math is simple – just use this formula: To get started, you’ll need to gather the original purchase price (if you don’t have it on hand, you can get it from your broker) and your selling price. So, how do you calculate the percentage gain or loss on your investments? Calculating the Yield (or Lack Thereof) on Your Investments As with many things in investing, education and practice are the keys to success. The math in these equations is relatively simple and straightforward once you know how to use them. (And if you’re the competitive type, you can calculate your percentage gain or loss against your friends to determine who bought in at the right time.) This provides a way for you to compare the assets you hold – or could have held – against each other and your broader portfolio. □ Understanding how to calculate percentage gain or lossĬalculating the percentage gain or loss on your investments tells you how profitable, comparatively, a particular position has been in your portfolio. That’s why you need to know how to calculate your percentage gain or loss. Knowing just how much you’ve gained or lost is a crucial component of being a savvy, informed investor. If you’ve invested in the stock market at any point, chances are, you’ve seen your share of gains and losses.
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