How is returns calculated when we sell stocks ?

POSTED BY Viren Phansalkar ON September 13, 2013 3:43 pm COMMENTS (3)

Hello,

Suppose I buy 10 stocks of X company. I hold it for say 3 days and then sell it off. Assume that i get a profit of 30 rupees. So how do I calculate the returns % arising out of this sale?

Would it be like – 30 rupees in 3 days, so 10 rupees per day. So annual gain (assumption) is 3650. And now use this 3650 to calculate gain on the amount invested in equities?

Thank you.

3 replies on this article “How is returns calculated when we sell stocks ?”

  1. ashalanshu says:
    September 17, 2013 at 3:59 pm

    Dear Viren, please use XIRR function of exl. sheet to calculate the annualized gains for your 3-4 day holding.

    thanks

    Ashal

    Reply
  2. vaibhav45 says:
    September 13, 2013 at 5:30 pm

    Return on Investment will be

    Profit/Investment&100
    Suppose you have invested 3000 initially and after 1 year u get 650 as profit (Total 3650)

    Your ROI would be = 650/3000*100 which comes to 21% yearly profit on your investment which is too good.

    Reply
    1. Viren Phansalkar says:
      September 16, 2013 at 1:01 pm

      Hello Vaibhav,
      Thank you for the reply. However, i am looking to calculate returns as a function of number of days the stocks are held. Calculate on ROI for yearly basis is easy but i am not sure how to do it for number of days.

      Thank you.

      Reply

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