1. What is Return Percentage?

Return percentage is a measure of investment performance that shows how much an investment has gained or lost relative to its original cost. It's a fundamental metric in share market analysis.

2. How Does the Calculator Work?

The calculator uses the return percentage formula:

Where:

• Current Price — The current market value of the investment
• Purchase Price — The original cost of the investment

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

3. Importance of Return Calculation

Details: Calculating return percentage helps investors evaluate performance, compare different investments, and make informed decisions about buying, holding, or selling assets.

4. Using the Calculator

Tips: Enter both current and purchase prices in the same currency. Ensure values are positive numbers representing actual transaction prices.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative return percentage mean?
A: A negative return indicates a loss - the current price is below the purchase price.

Q2: Should I include dividends in this calculation?
A: This is a price return calculation only. For total return, you would need to include dividends and other distributions.

Q3: How often should I calculate my returns?
A: It depends on your investment strategy. Long-term investors might check quarterly, while active traders may calculate daily.

Q4: Does this account for inflation?
A: No, this is nominal return. For real return, you'd need to adjust for inflation separately.

Q5: Can I use this for other investments besides stocks?
A: Yes, this formula works for any investment where you have a purchase price and current value (bonds, real estate, etc.).