Calculate the per-share value of an investment fund, mutual fund, or ETF.
Include cash, stocks, bonds, and receivables.
Include accrued expenses and debts.
The total units held by all investors.
Calculated Net Asset Value
$0.00
per share / unit
Understanding Net Asset Value (NAV)
The Net Asset Value (NAV) represents the per-share market value of a mutual fund, Exchange Traded Fund (ETF), or a closed-end fund. It is essentially the price at which investors buy or sell units of a fund from the fund company.
The NAV Formula
NAV = (Total Assets – Total Liabilities) / Total Shares Outstanding
Key Components
Total Assets: This includes the market value of all securities held in the portfolio, cash equivalents, and any accrued income (interest or dividends).
Total Liabilities: This encompasses all debts, short-term and long-term liabilities, and accrued expenses such as management fees, audit fees, and other operational costs.
Shares Outstanding: The total number of units or shares currently held by all investors in that specific fund.
Practical Example
Imagine a mutual fund that holds $50,000,000 in various tech stocks and has $2,000,000 in cash. However, it owes $1,000,000 in management fees and operational debts. If there are 1,000,000 shares outstanding, the calculation would be:
Total Assets: $50,000,000 + $2,000,000 = $52,000,000
Net Assets: $52,000,000 – $1,000,000 = $51,000,000
NAV: $51,000,000 / 1,000,000 = $51.00 per share
Why is NAV Important?
For mutual funds, the NAV is calculated at the end of every trading day based on the closing market prices of the securities in the fund's portfolio. It serves as a benchmark for performance and the standard price for transactions. For ETFs, the NAV helps investors determine if the fund is trading at a "premium" or a "discount" relative to its actual underlying value.
function calculateNAV() {
var assets = document.getElementById("totalAssets").value;
var liabilities = document.getElementById("totalLiabilities").value;
var shares = document.getElementById("sharesOutstanding").value;
var resultDisplay = document.getElementById("navDisplay");
var resultContainer = document.getElementById("navResultContainer");
var errorDisplay = document.getElementById("errorDisplay");
// Reset displays
errorDisplay.style.display = "none";
resultContainer.style.display = "none";
// Validation
if (!assets || assets < 0) {
showError("Please enter a valid amount for Total Assets.");
return;
}
if (!liabilities || liabilities < 0) {
showError("Please enter a valid amount for Total Liabilities.");
return;
}
if (!shares || shares <= 0) {
showError("Number of Shares Outstanding must be greater than zero.");
return;
}
var totalAssets = parseFloat(assets);
var totalLiabilities = parseFloat(liabilities);
var totalShares = parseFloat(shares);
var netAssets = totalAssets – totalLiabilities;
var nav = netAssets / totalShares;
// Output formatting
resultDisplay.innerHTML = "$" + nav.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 4});
resultContainer.style.display = "block";
}
function showError(message) {
var errorDisplay = document.getElementById("errorDisplay");
errorDisplay.innerHTML = message;
errorDisplay.style.display = "block";
}