Investing in stocks can be a powerful way to grow wealth over time. Understanding how to calculate the return on your stock investments is fundamental for making informed financial decisions. This simple stock return calculator helps you quickly assess the performance of a specific stock holding.
How the Calculation Works:
The calculator determines your profit or loss based on the initial investment and the current value of your shares, factoring in any transaction fees.
Total Purchase Cost: This is the total amount you paid for the shares, including any brokerage commissions.
Calculation: (Purchase Price per Share * Number of Shares) + (Purchase Price per Share * Number of Shares * Commission Fee)
Total Current Value: This is the current market value of your shares.
Calculation: Current Price per Share * Number of Shares
Total Profit/Loss: The difference between the total current value and the total purchase cost.
Calculation: Total Current Value – Total Purchase Cost
Percentage Return: This expresses your profit or loss as a percentage of your initial investment.
Calculation: (Total Profit/Loss / Total Purchase Cost) * 100
Example Scenario:
Let's say you purchased 100 shares of a company at $50 per share. You paid a commission fee of 0.5% (0.005) on the purchase. Later, the stock price rises to $65 per share, and you want to see your return.
In this example, your investment has yielded a profit of $1,475, representing a return of approximately 29.35% on your initial investment.
Why Use This Calculator?
This tool is invaluable for:
Quickly assessing the performance of individual stock holdings.
Understanding the impact of brokerage fees on your overall returns.
Making decisions about whether to hold, sell, or buy more shares.
Tracking progress towards your investment goals.
Remember that stock market investments involve risk. Past performance is not indicative of future results. Always conduct thorough research before making investment decisions.
function calculateStockReturn() {
var purchasePrice = parseFloat(document.getElementById("purchasePrice").value);
var numberOfShares = parseFloat(document.getElementById("numberOfShares").value);
var currentPrice = parseFloat(document.getElementById("currentPrice").value);
var commissionFee = parseFloat(document.getElementById("commissionFee").value);
var resultElement = document.getElementById("result");
var totalReturnElement = document.getElementById("totalReturn");
var percentageReturnElement = document.getElementById("percentageReturn");
// Clear previous results and styling
totalReturnElement.innerText = "$0.00";
percentageReturnElement.innerText = "0.00%";
resultElement.style.borderColor = "#28a745"; // Default to green if calculation is valid
resultElement.style.color = "#28a745";
// Input validation
if (isNaN(purchasePrice) || isNaN(numberOfShares) || isNaN(currentPrice) || purchasePrice <= 0 || numberOfShares <= 0 || currentPrice < 0) {
totalReturnElement.innerText = "Invalid Input";
percentageReturnElement.innerText = "";
resultElement.style.color = "#dc3545"; // Red for error
return;
}
// Handle optional commission fee
var actualCommissionFee = isNaN(commissionFee) || commissionFee = 0 ? "$" + totalProfitLoss.toFixed(2) : "-$" + Math.abs(totalProfitLoss).toFixed(2);
var formattedPercentageReturn = percentageReturn.toFixed(2) + "%";
// Display results
totalReturnElement.innerText = formattedTotalReturn;
percentageReturnElement.innerText = formattedPercentageReturn;
// Style the result based on profit or loss
if (totalProfitLoss < 0) {
resultElement.style.borderColor = "#dc3545"; // Red border for loss
resultElement.style.color = "#dc3545"; // Red text for loss
} else {
resultElement.style.borderColor = "#28a745"; // Green border for profit
resultElement.style.color = "#28a745"; // Green text for profit
}
}