Use this stock market calculator to determine your investment returns based on purchase price, current price, and the number of shares. For a more detailed analysis, consider the advanced calculation to evaluate annualized returns over a given investment period.

Stock Market Calculation Formula

The following formulas are used for stock market calculations:

Return on Investment (ROI) = (Current Price - Purchase Price) * Number of Shares
Annualized ROI (%) = ((Current Value / Initial Investment) ^ (1 / Investment Period) - 1) * 100

Variables:

  • Return on Investment (ROI) is the net gain or loss from the investment in dollars ($)
  • Current Price is the price at which the stock is currently trading ($)
  • Purchase Price is the price at which the stock was initially purchased ($)
  • Number of Shares is the total amount of stock held
  • Initial Investment is the amount of money originally invested ($)
  • Current Value is the total value of the investment at present ($)
  • Investment Period is the duration of the investment in years
  • Annualized ROI is the yearly return rate on the investment (%)

To determine the ROI, subtract the purchase price from the current price and multiply by the number of shares. For annualized ROI, adjust the current value and initial investment to reflect the investment period.

What is Stock Market Calculation?

Stock market calculation involves analyzing the performance of investments in stocks. This process helps investors understand their returns, both in the short term and over longer periods. Accurate calculations aid in making informed investment decisions and in evaluating the success of investment strategies.

How to Calculate Investment Returns?

Follow these steps to calculate your investment returns:

  1. Determine the purchase price and the current price of the stock.
  2. Calculate the return on investment using the formula provided.
  3. For a detailed analysis, include the number of shares and consider the annualized ROI if needed.
  4. Use the calculator above to input your values and obtain the results.
  5. Review the calculations and compare them with your investment goals.

Example Problem:

Use the following example to practice your calculations:

Purchase Price = $50

Current Price = $75

Number of Shares = 100

Initial Investment = $5,000

Current Value = $7,500

Investment Period = 2 years

FAQ

1. What is ROI in the stock market?

ROI (Return on Investment) represents the gain or loss on an investment relative to the investment’s cost.

2. How do I calculate annualized ROI?

Annualized ROI is calculated by adjusting the return to reflect a yearly rate, considering the investment period.

3. What factors affect stock market calculations?

Factors include purchase and current prices, number of shares, initial investment, and investment period.

4. Can I use the calculator for multiple investments?

Yes, you can calculate ROI for each investment separately and compare the results.

5. Is the calculator suitable for all types of stocks?

Yes, it can be used for any publicly traded stock. Adjust the input values accordingly for accurate calculations.