How to Calculate the Percentage Gain or Loss on Your Investment?

Whether you are a student, researcher, business owner, or jobholder, calculations are essential to your life. From the multi-millionaires to ordinary beggars on the streets, everyone depends on mathematics. We need to make various calculations to make our home budgets and estimate loss and gain almost every day.

However, the calculations are more important for investors. They need to estimate how much they have gained or lost in a business. They have zero margins for errors because those errors can cost them a lot or force them to invest in the wrong firms or commodities. For that, sometimes they hire professional accountants, and other times they do it themselves. 

But not everyone is very good at calculations. They also make mistakes in simple mathematics. Therefore, those investors must depend on trained professionals or technology to do all these tasks. If you are also one of them, this article is for you. It will briefly discuss how to calculate the percentage gain or loss on your investment!

Hire Experienced Accountant

The business world hugely depends on the accountants who charge for their professional services. They do most of the maths themselves, suggest to investors where they should invest their money, and estimate how much they can gain from it. 

Moreover, they also guide them on which sectors, companies, or commodities are bad for investments. At the end of every deal, they also tell investors about the net profit or loss.

However, there are several issues with professional accountants. For example, they sometimes cost business owners a lot and get a huge portion of their profit. Plus, whether a business deal is successful or not, they charge for their services. And lastly, there is always a margin of human error in their calculations. That’s why you cannot always trust them.

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So, if you are a small business owner or cannot afford to pay a hefty amount to professional accountants, you have plenty of other options. And the next one is one of them!

Do it Yourself

It is the best way to manage all of your investments. If you have invested in only a few businesses or stocks, you can do all the maths yourself instead of hiring experts who can break the bank. 

It isn’t very difficult to calculate how much you have gained or lost against an investment. There is a simple maths formula that can provide all the details. If you have a digital calculator, you can do it within a few minutes.

  • The formula for Calculating Percentage Gain or Loss

Calculating percentages of gain or loss for an investment is straightforward. First, you need to follow the formula and write down the selling price or final price. After that, subtract the invested amount. Your value, whether positive or negative, is the net profit or loss. 

Once you get the value, divide it by the original value you invested. And lastly, multiply the result by 100. The number you have got is the percentage of gain or loss. If the number is positive, it is your gain. On the other hand, the negative sign with the value indicates the loss.

  • For example, if you have invested 600 USD in a stock, sell it for 730 USD. In that case, first, subtract 600 USD from 730 USD

730-600 = 130

  • Divide it by the originally invested amount
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130/600 = 0.21

  • Multiply the value with 100

0.21*100 = 21

As the value is positive, you have gained 21% profit.

If you don’t want to put a calculator in front of yourself and calculate these things, you have another feasible and easier way to do the job!

  • Use an Online Percentage Gain or Loss Calculator

Many companies have developed easier-to-use percentage increase calculators to assist investors and other users. Open any reliable and accurate percentage increase calculator on your mobile or desktop device, and put the initial amount you have invested in a business and the final or selling amount. The calculator will immediately show you what you have gained in that deal.

Most investors and even accountants use these calculators because they are reliable, easy, and accurate. These error-free percentage growth calculators can do the math within a few nanoseconds and help you get the result before your screen. 

Moreover, they don’t charge you anything for the services.

If you already know where to invest and how to manage your business, don’t ever hire accountants, as they can take a lot of your money by doing simple things you can do with free tools.

Final Words

This article has suggested three of the best ways to calculate your investment’s percentage gain or loss. Moreover, it has also enlightened you about the benefits of using them. So, it depends on you which method you choose to make calculations. Hopefully, you will make the right decisions and earn as much money as you want.