Profit Calculation Formula:
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Profit percentage is a financial metric that shows the amount of profit relative to the investment cost. It's expressed as a percentage of the buy price and helps investors evaluate the performance of their investments.
The calculator uses the profit percentage formula:
Where:
Explanation: The formula calculates the percentage gain (or loss) by comparing the difference between selling and buying prices to the original investment.
Details: Calculating profit percentage helps investors compare performance across different investments regardless of their size, make informed decisions about holding or selling assets, and evaluate investment strategies.
Tips: Enter the buy price (what you paid for the stock) and sell price (what you sold it for) in USD. Both values must be positive numbers.
Q1: What does a negative profit percentage mean?
A: A negative percentage indicates a loss - you sold the stock for less than you paid for it.
Q2: Should I include fees in the calculation?
A: For more accurate results, you should subtract any brokerage fees from the sell price and add them to the buy price.
Q3: How is this different from ROI?
A: This is essentially the same as Return on Investment (ROI) when considering a single investment without additional factors like dividends or time.
Q4: What's considered a good profit percentage?
A: This varies by market conditions and investment strategy, but generally anything above the market average (typically 7-10% annually for stocks) is considered good.
Q5: Can I use this for cryptocurrencies?
A: Yes, the formula works for any asset where you have a buy and sell price, including cryptocurrencies, commodities, or other investments.