How do I calculate investment profit?
know how to calculate investment profit can be important. The reason is that the money you receive from the investment is usually not all profit. Learn how to calculate investment profits can help you determine the amount you actually get. In principle, you will have to start with the amount of money you have invested and add to the money you paid for investment -related expenses. By deducting the money you spent on the investment of its current value, you can come up with a number that represents your investment profit.
When you invest, you will probably have a number of expenditures in connection with it. For example, you can pay sales costs, commissions and taxes; You can even pay for financial advice. If you want to calculate investment profit, you will usually need to add all your related expenses. Once it is done, you will need to add expenses at the basic cost of your investment to get the total investment costs. Finally, you can deduct the totalThe cost of investing from its current value to find out how much you benefited.
This can help consider an example when you learn how to calculate investment profit. For example, if you have invested $ 1,000 (USD) in securities and paid $ 75 for fees plus $ 60 for financial advice, the total cost of your investment would be $ 1,135. If your investment is $ 1,500 for a period of time and there are no additional investment expenses, you can deduct the total cost of your investment from the amount worth it. In this case, you will find that you have benefited $ 365 for your investment. If you have only deducted a basic amount of $ 1,000 from the current value of the investment, you would not have a realistic view of your profit; Instead, it may seem that you earned a $ 500 profit.
MAY Use this method to calculate investment profit for securities but can also workto calculate other types of investment. For example, if you invest in real estate and sell it later, you may need to add a number of expenditures, including any money you spent on renovation and commissions, to the real estate purchasing price to find out your overall expenses. You can then deduct this number from the price for which you sell the property to determine your profit.