How Do I Calculate Percentages

The simple return percentage on an investment is very easy to calculate. The higher the percentage (as long as it is not in the negative), the more successful the investment was as a whole. Unlike total return, simple return is assessed only after the stock has been sold. Following is the equation and a few examples to help you understand how to calculate simple return for stock investment.

Simple Return for Stock Trading Equation

The equation for determining the percentage of simple return is itself very simple. All that you need to do is add up the costs and gains, and use basic math to find this value. Below is the equation:

(Total Proceeds/Total Buying Costs)-1

For example, if an investor bought 100 shares of XYZ at $4 per share, with $10 commission per trade, $410 was spent. If, later, the stock rose to $5 per share, at which point all shares were sold, for a total of $500 with the $10 commission charge (so, $490 in gains: be sure to subtract selling commission here rather than add it to total cost) the simple return equation would be as follows: