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

Learn to Calculate Profit & Loss Percentage on a Share Investment

Calculating the profit or loss percentage on a share you've invested in is a genuinely useful way to keep track of your portfolio's performance. Here's a simple formula to do it.

The Formula

Profit/Loss % = [(Selling Price − Cost Price) ÷ Cost Price] × 100

Where:

Cost Price (C.P.) — the price you bought the share at
Selling Price (S.P.) — the price you sold the share at

How It Works

Step 1: Subtract the Cost Price from the Selling Price (S.P. − C.P.).

If the result is positive, you've made a profit. If it's negative, you've taken a loss.

Step 2: Take that result (positive or negative) and divide it by the Cost Price, then multiply by 100 to get the percentage.

A Worked Example

Say you bought a share at $5 (Cost Price) and later sold it at $15 (Selling Price).

Step 1: 15 − 5 = 10 (positive, so this is a profit)

Step 2: (10 ÷ 5) × 100 = 200%

So in this example, you'd have earned a 200% profit on your investment.

→ Related: What Is the Share Market?(#2) — for more on how share prices work.

That's the full formula for calculating your profit or loss percentage on any share investment. Thanks for reading.

Comments

What Is Bitcoin Mining? Get Free Bitcoins! (#34)

What Is Share Market? All About Stock/Share Market! [Explained In Easy Words] (#2)

What Is the Share Market? A Complete Beginner's Guide The share market gives ordinary people a way to earn returns without actively working for that money — instead, their capital works on their behalf. Many are drawn to it by the promise of high returns that have turned everyday investors into millionaires over time. Just as many are wary of its downside, having watched others lose significant sums. Every day, thousands of new investors enter the market and begin their investing journey. This guide covers everything you need to know about the share market from an investor's perspective. Jump to any section below: What is the share market? How was it formed? (A brief history) How does it work today? Is it risky? Should you invest? How do you start investing? (Demat and trading accounts) How do you avoid losses, and where can you learn more? Bonus: Stocks vs. shares, and the definition of "securities" What Is the Share Market? Just as a regular ...

How To Become A Stock Broker? What Do You Require To Get Into This Field? [Basic Requirements!] (#45)

How to Become a Stock Broker: Basic Requirements Considering a career as a stock broker? Here's a look at what it typically takes to break into the field. Note: this is based on independent research and reflects general, commonly-cited requirements — it isn't legal or professional guidance. Requirements vary meaningfully by country, so always confirm the specifics with your own country's capital market regulator before pursuing this path. Common Requirements (India, as an Example) Since requirements vary significantly by country, here's a general picture based on India's framework, where the process is fairly well documented: Educational background : at minimum, having passed 12th grade (10+2), though most brokerage firms strongly prefer — and often require — a bachelor's degree in finance, commerce, economics, or a related field. Minimum age : typically 21 years old. Certification exams : candidates generally need to pass relevant certification exams (in I...

How Do The Rich Avoid Paying Taxes? (#82)

How Do the Rich Avoid Paying Taxes? Almost everyone has heard some version of it: the ultra-wealthy paying close to $0 in federal income tax — legally. Here's how that actually works. Step 1: Invest, Don't Just Earn a Salary The wealthy tend to hold most of their net worth in appreciating assets — real estate, stocks, bonds — rather than a paycheck. This matters because of a key distinction in how these are taxed. Income Tax applies to money you earn — a salary, for instance. Capital Gains Tax applies to the profit from an investment, and critically, it's only triggered when you actually sell the asset. As long as an asset is simply held, any growth in its value is "unrealized" — and unrealized gains aren't taxed at all under current tax law. → Related: What Is the Share Market? (#2) This is the core insight the wealthy build around: if you never sell, you never trigger the tax. Step 2: Borrow Instead of Selling That raises an obvious question — if they ...

How Are Investment Banks Different From Commercial//Common Banks? (in the way they function & perform basic tasks)! (#87)

How Are Investment Banks Different From Commercial Banks? Both are "banks," so it's an easy mix-up — but investment banks and commercial banks function quite differently. We've covered each individually before; today, let's put them side by side. → Related: What Are Investment Banks? (#73) , How Do Banks Work? (#72)** What Do They Actually Do? Investment Banks help businesses raise capital by connecting them with investors — acting as a guaranteeing intermediary in the process (a function called underwriting ). They're also heavily involved in mergers and acquisitions , advising companies on buying, selling, or merging with other businesses. Commercial Banks (the kind most of us interact with daily) issue loans, handle everyday transactions like transfers, and collect deposits — paying depositors a portion of interest in return for holding their money. Who Benefits, and How? Investment banks primarily serve businesses and investors directly — helping the ...

RSPH Blogs - Finances!

Search This Blog