Stock Market Profit Percentage Calculator
Here’s a comprehensive table summarizing all you need to know about Stock Market Profit Percentage calculations:
Aspect | Details |
---|---|
Basic Formula | Profit Percentage = ((Selling Price – Purchase Price) / Purchase Price) x 100 |
Profit Calculation | Profit = Selling Price – Purchase Price |
Loss Calculation | Loss = Purchase Price – Selling Price |
Realized vs. Unrealized Gains | Realized gains are from sold stocks; unrealized gains are from stocks still held |
Including Fees | Reduce the gain by transaction costs: ((Selling Price – Purchase Price – Fees) / Purchase Price) x 100 |
Including Dividends | Add dividend income to the gain: ((Selling Price – Purchase Price + Dividends) / Purchase Price) x 100 |
Calculating Dollar Profit | Dollar Profit = (Selling Price x Number of Shares) – (Purchase Price x Number of Shares) |
Short-Term vs. Long-Term Gains | Short-term: held < 1 year; Long-term: held > 1 year (affects tax rates) |
Break-Even Point | When Selling Price = Purchase Price (0% profit/loss) |
Annualized Return | (1 + Total Return)^(365/Days Held) – 1 |
Benchmark Comparison | Compare your stock’s performance to market indices (e.g., S&P 500) |
Risk-Adjusted Return | Sharpe Ratio = (Return – Risk-Free Rate) / Standard Deviation of Returns |
Tax Implications | Profits are subject to capital gains tax; rates vary based on holding period and income |
This table covers the essential aspects of calculating and understanding stock market profit percentages. It includes the basic formula, how to account for fees and dividends, the difference between realized and unrealized gains, and concepts like annualized return and risk-adjusted return. Remember that while percentage return is important, it should be considered alongside other factors such as absolute dollar profit, risk, and overall portfolio performance123.