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Calculate Percentage Gain On Investment

Investment Gain Formula:

\[ \text{Gain\%} = \frac{\text{Current Value} - \text{Initial Investment}}{\text{Initial Investment}} \times 100 \]

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1. What is Investment Gain Percentage?

The investment gain percentage measures how much an investment has grown relative to its original cost. It shows the return on investment (ROI) as a percentage, allowing easy comparison between different investments.

2. How Does the Calculator Work?

The calculator uses the investment gain formula:

\[ \text{Gain\%} = \frac{\text{Current Value} - \text{Initial Investment}}{\text{Initial Investment}} \times 100 \]

Where:

Explanation: The formula calculates the difference between current and initial values, divides by the initial investment to get the relative gain, then converts to percentage.

3. Importance of Calculating Investment Gains

Details: Tracking investment performance helps assess financial growth, compare different investment options, and make informed decisions about portfolio management.

4. Using the Calculator

Tips: Enter the original investment amount and current value in dollars. Both values must be positive numbers (initial investment must be greater than zero).

5. Frequently Asked Questions (FAQ)

Q1: What does a negative percentage mean?
A: A negative percentage indicates a loss on your investment (current value is less than initial investment).

Q2: How does this differ from annualized return?
A: This shows total gain percentage regardless of time period. Annualized return accounts for investment duration.

Q3: Should I include dividends in current value?
A: Yes, for total return calculations include all cash flows received from the investment.

Q4: What's considered a good investment gain?
A: This depends on asset class and time period. Historically, 7-10% annual return is good for stock investments.

Q5: Can I use this for cryptocurrency investments?
A: Yes, the formula works for any investment where you can measure initial and current values.

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