How to calculate your return on investment
I was looking around some of my investment accounts today and wanted to see what my return on investment (ROI) was looking like. I wasn’t sure how to calculate it exactly so I looked it up. In case you do not know how to calculate ROI I thought I would share the steps.
1. Add up your total investment amount. Be sure to add in any fees or service charges for your account. For instance, if you have a Sharebuilder account they charge something like $10 to do a real time trade.
2. Check out the current value of your investment.
3. Subtract total investment amount from current value amount. If you get a negative number then you have a LOSS. If you get a positive number then you have a PROFIT.
4. Take your profit (or loss) and divide that by the total investment amount. You should end up with a number like 0.08. Convert that to a percentage to get your ROI for that investment.
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