How to Calculate Investment Returns

Check your returns to see how you are doing.

Check your returns to see how you are doing.

No matter how you choose to invest your money, you need to carefully evaluate the performance of your funds and make sure you are on track. Taking the time to calculate your investment returns will help you identify the winners and losers in your portfolio, allowing you to make changes and maximize your returns going forward. All you need to calculate your investment returns is your investment statements and a calculator.

Review the latest statement from your investment account. Check the current balance as shown on the statement.

Find the statement from the same investment account a year ago. Review the balance shown on that statement.

Add any additional investments you made during the year. Calculate the total of the additional investments plus the starting balance from your statement a year ago.

Subtract the figure you calculated in step 3 from the current balance of your investment. This is your gain for the year.

Divide the gain calculated in step 4 by the starting balance of your investment. Multiply the result by 100 to put the investment return into percentage terms. For instance, if the total of your starting balance and your additional investments is $100,000 and your current balance is $120,000, the total investment return would be 20 percent.

Items you will need

  • Investment statements
  • Calculator
 

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