1. What is Return Percentage?

Return percentage measures the gain or loss generated on an investment relative to the amount of money invested. It's a fundamental metric in share market analysis to evaluate investment performance.

2. How Does the Calculator Work?

The calculator uses the return percentage formula:

Where:

• \( Final \) — Current value of investment
• \( Initial \) — Original investment amount

Explanation: The formula calculates the percentage change between the final and initial investment values.

3. Importance of Return Calculation

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

4. Using the Calculator

Tips: Enter the initial investment amount and current value in dollars. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative return percentage mean?
A: A negative return indicates a loss on your investment - the final value is less than the initial investment.

Q2: How does this differ from annualized return?
A: This calculates simple return without considering the time period. Annualized return accounts for the investment duration.

Q3: Should I include dividends in the final value?
A: For total return calculations, yes - include all dividends and capital gains reinvested.

Q4: What's considered a good return percentage?
A: This depends on the asset class and time period. Historically, stock market averages about 7-10% annual return.

Q5: Can I use this for other investments besides stocks?
A: Yes, this formula works for any investment where you can measure initial and final values - real estate, bonds, mutual funds, etc.