Initial 1000; final 1100; income 50; fees 10; 12 months
Net profit 140; ROI 14%; annualized 14%Net receipts are 1140. The 140 gain is 14% of the initial 1000, and a 12-month period needs no annual adjustment.
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Compare an investment’s final value with what you originally paid. Add income such as dividends and subtract fees to separate net profit from percentage return. Annualization expresses the same end-to-end change as a constant yearly rate; it does not predict future performance.
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Net receipts are 1140. The 140 gain is 14% of the initial 1000, and a 12-month period needs no annual adjustment.
Illustrative default-input result. Two-position average price before broker fees and taxes; target shares estimate assumes stable purchase price.
No. Two-position average price before broker fees and taxes; target shares estimate assumes stable purchase price.
Estimate annual dividend cash flow using price per share, holdings, payment per share and annual distribution frequency. Specify your own illustrative withholding percentage.
Two successive 10% increases multiply by 1.1 × 1.1 = 1.21 rather than adding to 20%.