Gain/Loss Formula:
From: | To: |
Stock gain or loss represents the difference between the current value of an investment and its original purchase price. It helps investors evaluate the performance of their investments.
The calculator uses the simple gain/loss formula:
Where:
Explanation: A positive result indicates a gain, while a negative result indicates a loss. The percentage change shows the relative performance compared to the original investment.
Details: Tracking investment performance is crucial for portfolio management, tax reporting, and making informed decisions about buying, holding, or selling assets.
Tips: Enter the current market value and original purchase price in dollars. Both values must be positive numbers.
Q1: Should I include dividends in the current value?
A: For total return calculations, yes. For capital gain/loss only, use just the stock price.
Q2: How do I account for stock splits?
A: Adjust your purchase price by the split ratio. For a 2:1 split, divide original purchase price by 2.
Q3: What about transaction fees and taxes?
A: This calculator shows gross gain/loss. For net calculations, subtract transaction fees and consider tax implications.
Q4: Can I use this for other investments?
A: Yes, the same formula works for any asset where you know purchase price and current value.
Q5: How often should I calculate gains/losses?
A: Regular monitoring (monthly/quarterly) is good for active traders, while long-term investors might check annually.