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To Calculate The Percentage Follow These Steps:
In calculating the percentage gain or loss on an investment, investors need to first determine the original cost or purchase price.
Next, the selling price of the investment is subtracted from the purchase price to arrive at the gain or loss on the investment. Take the gain or loss from the investment and divide it by the original amount of the investment or purchase price. Finally, multiply the result by 100 to get the percentage change in the investment.
Why Calculating Percentage Gain or Loss is Important
Calculating the gain or loss on an investment as a percentage is important because it shows how much was earned as compared to the amount needed to achieve the gain.