Sage-Tips

How do you calculate portfolio profit?

To find the net gain or loss, subtract the purchase price from the current price and divide the difference by the purchase prices of the asset. For example, if you buy a stock today for $50, and tomorrow the stock is worth $52, your percentage gain is 4\% ([$52 – $50] / $50).

How do you calculate portfolio return over time?

Once you define your time periods and sum up the portfolio NAV, you can start making your calculations. The simplest way to calculate a basic return is called the holding period return. Here’s the formula to calculate the holding period return: HPR = Income + (End of Period Value – Initial Value) ÷ Initial Value.

How do you calculate portfolio return on deposit?

Take the ending balance, and either add back net withdrawals or subtract out net deposits during the period. Then divide the result by the starting balance at the beginning of the month. Subtract 1 and multiply by 100, and you’ll have the percentage gain or loss that corresponds to your monthly return.

How do you calculate return on investment with deposits and withdrawals?

Calculate the rate of return for each sub-period by subtracting the beginning balance of the period from the ending balance of the period and divide the result by the beginning balance of the period. Create a new sub-period for each period that there is a change in cash flow, whether it’s a withdrawal or deposit.

How do you calculate portfolio investment?

Divide the value of the specified subset of investments by the total portfolio value to calculate the portion of the portfolio. In this example, if your tech stocks are worth $10,000 and the total portfolio is worth $50,000, divide $10,000 by $50,000 to get 0.2.

How do you calculate portfolio return?

The expected return of a portfolio is calculated by multiplying the weight of each asset by its expected return and adding the values for each investment. For example, a portfolio has three investments with weights of 35\% in asset A, 25\% in asset B, and 40\% in asset C.

How do you calculate portfolio return in Excel?

In column D, enter the expected return rates of each investment. In cell E2, enter the formula = (C2 / A2) to render the weight of the first investment. Enter this same formula in subsequent cells to calculate the portfolio weight of each investment, always dividing by the value in cell A2.

How do you calculate portfolio return from withdrawals?

The formula is: Ending value + withdrawal, divided by beginning value, minus one.

How do you calculate portfolio distribution?

Divide the dollar amount you have in one stock by your total portfolio amount. For example, if you have $5,000 in a stock and your total portfolio is worth $110,000, divide 5,000 by 110,000. This gives you a figure of 0.045. Multiply 0.045 by 100 to get your percentage.