Learn To Calculate The Profit & Loss Percentage On An Investment In Share Market! (#83)

 

Learn To Calculate The Profit Or Loss % Of A Share!

Calculating the profit/loss % of a share you invested in could be a great way to keep track of your portfolios p&l (profit & loss).

So, today I'll help you learn to calculate the Profit/Loss percentage on Investment with an easy formula.

So, here we go;

This is the formula & the steps....

The image above is the only thing you'll need to understand the formula;

Let me cover the basics quickly;

So the procedure of taking out the Profit/Loss % consists of 2 major steps;

Step 1 is to first subtract the Cost Price (C.P.) from the Selling Price (S.P.)

Cost Price (C.P.) is the price we bought the Share at.

& Selling Price (S.P.) is the price we sold the Share at.

After subtracting it; if the number you'll get is positive '+' then you can be sure of you earning a profit on this Investment. But in case it's negative that is in 'minus -' then it is a loss.

This is a very basic & easy step though!

Anyways, so now talking about Step 2

So we'll need to now take the answer we git from the previous calculation regardless of it being '-' or '+' & divide it by the C.P. & then we'll need to multiply it by 100.

It'll make a lot more sense within a while now!

Anyways so, now let us perform the calculations with an easy to understand example!

So, we need just 2 things; that is the Selling Price (S.P.) & Cost Price (C.P.)

In this example; let's take 5 $ as the Cost Price (C.P.) & 15 $ as the Selling Price.

So, 5$ is what I bought a share at & 15$ is what I sold it at.

We can clearly tell it's a profit!

Yet,

applying the formula....

So, step 1;

SP - CP 

SP = 15 ; CP = 5

15 - 5 = 10

(Note: because of the answer being positive, we can say that we've earned a profit on this Investement!)

Step 2;

Answer/CP × 100

Answer = 10 ; CP = 5

10/5 × 100 = 200%

Here's the calculation in a nutshell;

Anyways so that was how you can easily calculate your profit/loss % (percentage) on Investment!

I hope you enjoyed reading this article!

Thanks For Reading!

Have A Great Time, Ahead!