We are going to learn how to calculate the Percentage gain or loss in your investments which you have done.
First, you need to know about the original price at which the investment is bought at the time of buying. If you don’t have that then you can obtain that from your broker. They have the details of your every transaction.
First of all, investors need to have the original price of investment.
After that, you have to subtract the original price from the selling price.
Now you have to divide the substracted amount with the original price of investment.
After that, the Number should be multiplied by 100 to get into percent.
If the percentage is positive, then we know that the selling price is higher than the buying price and you have made some profit on your investment.
If the selling price is less than the buying price then your percentage will come in negative, which means you have made a loss in the investment.
To determine the gain or loss without selling the investment is similar. You have to subtract the current price from the buying price and the other parts are similar.
Importance of calculating percentage gain or loss
It is important to know how much gain you have made from your investment. It will also differentiate you from your colleagues. It will help you in making decisions about when to buy and when to sell the investments.
The amount of gain or loss depends on your initial investment amount. If one man had invested $10000 and another man had invested $20000 they have earned a 5% profit. Then the profit amount for person A is $500 and for Person B it is $10000.