Total return means how much your investment grew over a period of time, including all interest, dividends, and capital appreciation, less fees and/or commissions.

How do I compute the total return?

Your total return is computed by taking the amount your initial investment increased (your gain) plus all dividends or interest you received while you owned it. To calculate your percentage of total return, take the number you calculated above and divide by the amount of your initial investment. In order to compute your total return on an annual basis, take your percentage of total return and divide by the number of years you held the investment. Of course, these calculations are not adjusted for any taxes due on the investment gains. Please consult your tax adviser for further information.

What is a simple example of return on investment?

If you bought a stock for $5,000 on January 1, and sold it one year later for $5,500, your return would be 10%. You can compute this by subtracting $5,000 from $5,500, dividing this number ($500) by $5,000, and multiply by 100. This means your investment earned a one-year return of 10%.

What is "return on investment"?

Return on investment, expressed as a percentage, means how much more money you will make or earn over a period of time as a result of buying the investment.

How do I compute my return on investment?

You can figure your return on investment by taking how much money you originally put in when you purchased it, and subtracting it from the value of your investment when you sell it, less any fees/commissions or taxes, and then dividing this number by the amount you originally invested. Multiply this number by 100 to reveal your return on the investment, expressed as a percentage.

Why is patience important to successful investing?

Patience is important to successful investing because you may have to ride out what may be temporary short-term storms or declines in the market and keep a long-term view.

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