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

ByPhoenix Last Updated On

 

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.

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