1. What is Return Percentage?

Return percentage measures the gain or loss on an investment relative to the original amount invested. It's expressed as a percentage to allow easy comparison between different investments.

2. How Does the Calculator Work?

The calculator uses the return percentage formula:

Where:

• Change — The difference between current value and original investment (can be positive or negative)
• Original — The initial amount invested or principal

Explanation: The formula calculates what percentage the change represents of the original amount.

3. Importance of Return Percentage

Details: Return percentage is fundamental in finance for evaluating investment performance, comparing different investments, and making informed financial decisions.

4. Using the Calculator

Tips: Enter the change in value (can be positive for gains or negative for losses) and the original investment amount. Both values should be in USD.

5. Frequently Asked Questions (FAQ)

Q1: What's a good return percentage?
A: This depends on the investment type and timeframe. Generally, 7-10% annual return is considered good for stock market investments.

Q2: How is this different from ROI?
A: Return percentage is essentially the same as ROI (Return on Investment), though ROI sometimes includes additional factors like time period.

Q3: Can return percentage be negative?
A: Yes, a negative return percentage indicates a loss on the investment.

Q4: Should I include dividends in the change amount?
A: For total return calculations, yes - include both price appreciation and dividends received.

Q5: How does this work for multiple periods?
A: For multiple periods, you'd typically calculate compound annual growth rate (CAGR) instead of simple return percentage.