Investment Gain Formula:
From: | To: |
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.
The calculator uses the investment gain formula:
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.
Details: Tracking investment performance helps assess financial growth, compare different investment options, and make informed decisions about portfolio management.
Tips: Enter the original investment amount and current value in dollars. Both values must be positive numbers (initial investment must be greater than zero).
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.