1. What is Return Percentage?

Return percentage is a key metric in share market analysis that measures the gain or loss generated on an investment relative to the amount of money invested. It's expressed as a percentage of the original investment.

2. How Does the Calculator Work?

The calculator uses the return percentage formula:

Where:

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

Explanation: The formula calculates the percentage change in value from the purchase price to the current price.

3. Importance of Return Percentage

Details: Return percentage helps investors evaluate the performance of their investments, compare different investment opportunities, and make informed decisions about buying, holding, or selling assets.

4. Using the Calculator

Tips: Enter both current price and purchase price in the same currency. The purchase price must be greater than zero for the calculation to work.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative return percentage mean?
A: A negative return percentage indicates a loss on the investment, where the current price is lower than the purchase price.

Q2: How is this different from absolute return?
A: Return percentage shows relative performance (percentage change), while absolute return shows the actual monetary gain or loss.

Q3: Should I include dividends in the calculation?
A: This calculator shows price return only. For total return (including dividends), you would need to add dividend income to the current price.

Q4: What time period does this return represent?
A: The return percentage represents the total return since purchase. For annualized returns, additional calculations are needed.

Q5: How accurate is this for comparing different investments?
A: This provides a standardized way to compare performance, but doesn't account for risk, time period, or other factors that might affect investment decisions.