1. What is Share Price Return?

The Share Price Return measures the percentage change in value of an investment from its purchase price to its current price. It's a fundamental metric for evaluating investment performance.

2. How Does the Calculator Work?

The calculator uses the share price return formula:

Where:

• \( \text{Current Price} \) — The current market price of the share
• \( \text{Purchase Price} \) — The original purchase price of the share

Explanation: The formula calculates the percentage gain or loss relative to the original investment amount.

3. Importance of Return Calculation

Details: Calculating return percentage helps investors compare performance across different investments, assess portfolio performance, and make informed buy/sell decisions.

4. Using the Calculator

Tips: Enter both prices in the same currency (typically USD). Purchase price must be greater than zero for calculation.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative return mean?
A: A negative return indicates your investment is currently worth less than what you paid for it, representing a loss.

Q2: Does this include dividends?
A: No, this calculates price return only. Total return would include dividends and other distributions.

Q3: How often should I calculate returns?
A: Regular monitoring (monthly/quarterly) is recommended, but avoid making decisions based on short-term fluctuations.

Q4: What's considered a good return?
A: This depends on the investment type, time horizon, and market conditions. Historically, stocks average 7-10% annual return.

Q5: Can I use this for other investments?
A: Yes, the same formula works for any asset with a purchase price and current price (real estate, commodities, etc.).