#return-calc-wrapper {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
max-width: 600px;
margin: 20px auto;
padding: 25px;
border: 1px solid #e1e1e1;
border-radius: 8px;
background-color: #f9f9f9;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
}
#return-calc-wrapper h2 {
color: #333;
text-align: center;
margin-top: 0;
}
.input-group {
margin-bottom: 15px;
}
.input-group label {
display: block;
margin-bottom: 5px;
font-weight: 600;
color: #444;
}
.input-group input {
width: 100%;
padding: 12px;
border: 1px solid #ccc;
border-radius: 4px;
box-sizing: border-box;
font-size: 16px;
}
#calc-btn {
width: 100%;
padding: 15px;
background-color: #0073aa;
color: white;
border: none;
border-radius: 4px;
font-size: 18px;
font-weight: bold;
cursor: pointer;
transition: background-color 0.2s;
}
#calc-btn:hover {
background-color: #005177;
}
#return-results {
margin-top: 20px;
padding: 15px;
background-color: #fff;
border-left: 5px solid #0073aa;
border-radius: 4px;
display: none;
}
.result-item {
margin-bottom: 10px;
font-size: 18px;
}
.result-label {
font-weight: bold;
color: #555;
}
.result-value {
font-weight: 800;
color: #0073aa;
}
.negative-return {
color: #d93025 !important;
}
.article-section {
max-width: 800px;
margin: 40px auto;
line-height: 1.6;
color: #333;
}
.article-section h2 {
border-bottom: 2px solid #0073aa;
padding-bottom: 10px;
margin-top: 30px;
}
.example-box {
background: #f0f7ff;
padding: 15px;
border-radius: 5px;
border: 1px dashed #0073aa;
}
function runReturnCalculation() {
var initial = parseFloat(document.getElementById('initialCost').value);
var current = parseFloat(document.getElementById('currentValue').value);
var income = parseFloat(document.getElementById('extraIncome').value);
var resultsDiv = document.getElementById('return-results');
var profitSpan = document.getElementById('profitAmount');
var percentSpan = document.getElementById('percentResult');
if (isNaN(initial) || isNaN(current) || initial <= 0) {
alert("Please enter a valid initial investment and current value.");
return;
}
if (isNaN(income)) {
income = 0;
}
var totalProfit = (current + income) – initial;
var percentageReturn = (totalProfit / initial) * 100;
resultsDiv.style.display = "block";
profitSpan.innerHTML = "$" + totalProfit.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
percentSpan.innerHTML = percentageReturn.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) + "%";
if (totalProfit < 0) {
profitSpan.className = "result-value negative-return";
percentSpan.className = "result-value negative-return";
} else {
profitSpan.className = "result-value";
percentSpan.className = "result-value";
}
}
Understanding Your Investment Performance with the Percentage Return Calculator
In the world of finance, knowing how much you have gained or lost relative to what you started with is essential. A percentage return calculation allows you to compare different investments of varying sizes on an equal playing field.
What is a Percentage Return?
Percentage return, also known as the holding period return, represents the gain or loss of an investment over a specific period. It is expressed as a percentage of the investment's initial cost. This metric is vital because it factors in both the capital appreciation (the increase in the asset's price) and any income generated (like dividends or rent).
The Percentage Return Formula
To calculate the total percentage return of an asset, you can use the following mathematical formula:
Return (%) = [(Final Value + Income – Initial Cost) / Initial Cost] × 100
Where:
- Initial Cost: The total amount of money paid to acquire the investment.
- Final Value: The current market price or the price at which the asset was sold.
- Income: Any cash flows generated by the asset, such as dividends, interest, or rental income.
Practical Examples
Consider two different investment scenarios to see how the math works in the real world:
Scenario A: Stock Investment
You bought shares of Company X for $5,000. A year later, the shares are worth $5,400, and you received $100 in dividends.
- Total Profit: ($5,400 + $100) – $5,000 = $500
- Percentage Return: ($500 / $5,000) × 100 = 10%
Scenario B: Real Estate Income
You purchased a small rental property for $200,000. You sold it for $210,000 after collecting $12,000 in rent (after expenses).
- Total Profit: ($210,000 + $12,000) – $200,000 = $22,000
- Percentage Return: ($22,000 / $200,000) × 100 = 11%
Why Use a Percentage Return Instead of Dollar Gains?
Raw dollar amounts can be misleading. Earning $1,000 on a $2,000 investment is a massive success (50% return), whereas earning $1,000 on a $100,000 investment is quite modest (1% return). By using percentages, you can accurately judge the efficiency of your capital allocation across different asset classes like stocks, bonds, or crypto.
Important Considerations
When using this calculator, remember that it calculates nominal return. It does not automatically account for inflation, taxes, or brokerage commissions unless you manually subtract those costs from your final value. To find your "Real Return," you would need to subtract the inflation rate from your percentage return result.